Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Mar. 22, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | BRIGHTHOUSE LIFE INSURANCE Co OF NY | |
Entity Central Index Key | 1,167,609 | |
Document Type | 10-K | |
Document Period End Date | Dec. 31, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | FY | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Public Float | $ 0 | |
Entity Common Stock, Shares Outstanding | 200,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Investments: | ||
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $2,165,134 and $1,870,654, respectively,) | $ 2,221,563 | $ 1,878,514 |
Mortgage loans (net of valuation allowances of $1,747 and $1,775, respectively) | 394,863 | 406,085 |
Other invested assets, at estimated fair value | 3,784 | 8,656 |
Total investments | 2,620,210 | 2,293,255 |
Cash and cash equivalents, principally at estimated fair value | 86,154 | 18,583 |
Accrued investment income | 18,323 | 16,626 |
Premiums, reinsurance and other receivables | 572,609 | 354,939 |
Deferred policy acquisition costs and value of business acquired | 131,059 | 85,173 |
Current income tax recoverable | 0 | 57,736 |
Other assets | 36,317 | 48,285 |
Separate account assets | 5,021,633 | 4,758,449 |
Total assets | 8,486,305 | 7,633,046 |
Liabilities | ||
Future policy benefits | 674,046 | 627,007 |
Policyholder account balances | 1,343,330 | 1,202,350 |
Other Policyholder Funds | 12,733 | 7,285 |
Payables for collateral under derivative transactions | 5,384 | 8,942 |
Accrued Income Taxes | 2,064 | 0 |
Deferred income tax liability | 112,498 | 219,839 |
Other liabilities | 471,130 | 112,441 |
Separate account liabilities | 5,021,633 | 4,758,449 |
Total liabilities | 7,642,818 | 6,936,313 |
Commitments and Contingencies | ||
Stockholder’s Equity | ||
Common stock, par value $10 per share; 200,000 shares authorized, issued and outstanding | 2,000 | 2,000 |
Additional paid-in capital | 415,931 | 340,931 |
Retained earnings | 395,928 | 349,395 |
Accumulated other comprehensive income (loss) | 29,628 | 4,407 |
Total stockholder's equity | 843,487 | 696,733 |
Total liabilities and stockholder's equity | $ 8,486,305 | $ 7,633,046 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Amortized cost of fixed maturity securities available-for-sale | $ 2,165,134 | $ 1,870,654 |
Mortgage loans valuation allowances | $ 1,747 | $ 1,775 |
Stockholder’s Equity | ||
Common stock, par value | $ 10 | $ 10 |
Common stock, shares authorized | 200,000 | 200,000 |
Common stock, shares issued | 200,000 | 200,000 |
Common stock, shares outstanding | 200,000 | 200,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | |||
Premiums | $ 26,268 | $ 50,739 | $ 71,872 |
Universal life and investment-type product policy fees | 103,736 | 103,000 | 110,905 |
Net investment income | 86,327 | 57,780 | 52,944 |
Other revenues | (46,266) | 29,192 | (9,465) |
Net investment gains (losses) | (1,178) | (3,737) | 4,399 |
Net derivative gains (losses) | (157,222) | 67,726 | 65,000 |
Total revenues | 11,665 | 304,700 | 295,655 |
Expenses | |||
Policyholder benefits and claims | (4,774) | 51,980 | 49,400 |
Interest credited to policyholder account balances | 39,423 | 39,914 | 52,133 |
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Amortization | (39,997) | 23,217 | 103,826 |
Other expenses | 65,953 | 57,027 | 65,213 |
Total expenses | 60,605 | 172,138 | 270,572 |
Income (loss) before provision for income tax | (48,940) | 132,562 | 25,083 |
Provision for income tax expense (benefit) | (100,725) | 42,152 | 1,988 |
Net income (loss) | $ 51,785 | $ 90,410 | $ 23,095 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 51,785 | $ 90,410 | $ 23,095 |
Other comprehensive income (loss): | |||
Unrealized investment gains (losses), net of related offsets | 34,971 | (3,066) | (55,353) |
Unrealized gains (losses) on derivatives | (4,248) | 1,529 | 2,760 |
Other comprehensive income (loss), before income tax | 30,723 | (1,537) | (52,593) |
Income tax (expense) benefit related to items of other comprehensive income (loss) | (5,502) | 538 | 18,408 |
Other comprehensive income (loss), net of income tax | 25,221 | (999) | (34,185) |
Comprehensive income (loss) | $ 77,006 | $ 89,411 | $ (11,090) |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance at Dec. 31, 2014 | $ 618,412 | $ 2,000 | $ 340,931 | $ 235,890 | $ 39,591 |
Net income (loss) | 23,095 | 23,095 | |||
Other comprehensive income (loss), net of income tax | (34,185) | (34,185) | |||
Ending Balance at Dec. 31, 2015 | 607,322 | 2,000 | 340,931 | 258,985 | 5,406 |
Net income (loss) | 90,410 | 90,410 | |||
Other comprehensive income (loss), net of income tax | (999) | (999) | |||
Ending Balance at Dec. 31, 2016 | 696,733 | 2,000 | 340,931 | 349,395 | 4,407 |
Adjustments to Additional Paid in Capital, Capital Contributions from Parent | 75,000 | 75,000 | |||
Net income (loss) | 51,785 | 51,785 | |||
Other comprehensive income (loss), net of income tax | 19,969 | 19,969 | |||
Ending Balance at Dec. 31, 2017 | 843,487 | $ 2,000 | $ 415,931 | 395,928 | 29,628 |
Effect of change in accounting principle (Note 1) | $ 0 | $ (5,252) | $ 5,252 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities | |||
Net income (loss) | $ 51,785 | $ 90,410 | $ 23,095 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization expenses | 1,826 | 3,534 | 1,408 |
Amortization of premiums and accretion of discounts associated with investments, net | 4,390 | (828) | (1,918) |
(Gains) losses on investments, net | 1,178 | 3,737 | (4,399) |
(Gains) losses on derivatives, net | 56,628 | (44,031) | (41,794) |
Interest credited to policyholder account balances | 39,423 | 39,914 | 52,133 |
Universal life and investment-type product policy fees | (103,736) | (103,000) | (110,905) |
Change in accrued investment income | (1,686) | (404) | (1,048) |
Change in premiums, reinsurance and other receivables | (290,764) | 433,724 | 2,601 |
Change in deferred policy acquisition costs and value of business acquired, net | (57,086) | 18,241 | 99,059 |
Change in income tax | (58,293) | 44,325 | (78,460) |
Change in other assets | 102,321 | 103,403 | 102,648 |
Change in future policy benefits and other policy-related balances | 52,287 | 77,708 | 68,764 |
Change in other liabilities | 354,777 | (334,195) | 12,764 |
Net cash provided by (used in) operating activities | 153,050 | 332,538 | 123,948 |
Cash flows from investing activities | |||
Sales, maturities and repayments of fixed maturity securities | 548,721 | 140,236 | 364,194 |
Sales, maturities and repayments of mortgage loans | 42,363 | 42,446 | 23,593 |
Purchases of fixed maturity securities | (845,133) | (379,993) | (372,108) |
Purchases of mortgage loans | (30,679) | (44,325) | (45,240) |
Cash received in connection with freestanding derivatives | 729 | 54 | 786 |
Cash paid in connection with freestanding derivatives | (118) | (25) | (822) |
Net change in short-term investments | (12) | 18,487 | (6,380) |
Net change in other invested assets | (6) | 2 | 414 |
Other, net | 0 | 183 | 0 |
Net cash provided by (used in) investing activities | (284,135) | (222,935) | (35,563) |
Cash flows from financing activities | |||
Policyholder account balances: Deposits | 253,911 | 50,745 | 56,728 |
Policyholder account balances: Withdrawals | (126,697) | (156,717) | (146,131) |
Net change in payables for collateral under derivative transactions | (3,558) | 5,642 | 3,300 |
Capital contribution | 75,000 | 0 | 0 |
Net cash provided by (used in) financing activities | 198,656 | (100,330) | (86,103) |
Change in cash and cash equivalents | 67,571 | 9,273 | 2,282 |
Cash and cash equivalents, beginning of year | 18,583 | 9,310 | 7,028 |
Cash and cash equivalents, end of year | 86,154 | 18,583 | 9,310 |
Supplemental disclosures of cash flow information | |||
Net cash paid (received) for income tax | (42,132) | (1,314) | 80,448 |
Non-cash transactions: | |||
Transfer of fixed maturity securities from former affiliates | 0 | 552,113 | 0 |
Transfer of mortgage loans from former affiliates | $ 0 | $ 266,557 | $ 0 |
Business, Basis of Presentation
Business, Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business, Basis of Presentation and Summary of Significant Accounting Policies | 1. Business, Basis of Presentation and Summary of Significant Accounting Policies Business “BHNY” and the “Company” refer to Brighthouse Life Insurance Company of NY, a New York domiciled life insurance company. Brighthouse Life Insurance Company of NY is a wholly-owned subsidiary of Brighthouse Life Insurance Company, which is an indirect wholly-owned subsidiary of Brighthouse Financial, Inc. (together with its subsidiaries and affiliates, “Brighthouse”). The Company markets and/or administers traditional life, universal life, variable annuity and fixed annuity products to individuals. The Company is licensed to transact business in the state of New York. The Company is organized into two segments: Annuities and Life. On January 12, 2016, MetLife, Inc. (MetLife, Inc., together with its subsidiaries and affiliates, “MetLife”) announced its plan to pursue the separation of a substantial portion of its former U.S. retail business (the “Separation”). Additionally, on July 21, 2016, MetLife, Inc. announced that the separated business would be rebranded as “Brighthouse Financial.” Effective March 6, 2017, and in connection with the Separation, the Company changed its name from First MetLife Investors Insurance Company to Brighthouse Life Insurance Company of NY. On October 5, 2016, Brighthouse Financial, Inc., which until the completion of the Separation on August 4, 2017, was a wholly-owned subsidiary of MetLife, Inc., filed a registration statement on Form 10 (as amended, the “Form 10”) with the U.S. Securities and Exchange Commission (“SEC”) that was declared effective by the SEC on July 6, 2017. The Form 10 disclosed MetLife, Inc.’s plans to undertake several actions, including an internal reorganization involving its U.S. retail business (the “Restructuring”) and include the Company and certain affiliates in the planned separated business, and distribute at least 80.1% of the shares of Brighthouse Financial, Inc.’s common stock on a pro rata basis to the holders of MetLife, Inc. common stock. In connection with the Restructuring, effective April 2017, following receipt of applicable regulatory approvals, MetLife, Inc. contributed certain affiliated reinsurance companies and the Company to Brighthouse Life Insurance. On July 28, 2017, MetLife, Inc. contributed Brighthouse Holdings, LLC, an intermediate holding company, to Brighthouse Financial, Inc., resulting in the Company becoming an indirect wholly-owned subsidiary of Brighthouse Financial, Inc. On August 4, 2017, MetLife, Inc. completed the Separation through a distribution of 96,776,670 of the 119,773,106 shares of the common stock of Brighthouse Financial, Inc, representing 80.8% of MetLife Inc.’s interest in Brighthouse, to holders of MetLife, Inc. common stock. Basis of Presentation The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported on the financial statements. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company’s business and operations. Actual results could differ from these estimates. Since the Company is a member of a controlled group of affiliated companies, its results may not be indicative of those of a stand-alone entity. Reclassifications Certain amounts in the prior years’ financial statements and related footnotes thereto have been reclassified to conform with the current year presentation as discussed throughout the Notes to the Financial Statements. Summary of Significant Accounting Policies The following are the Company’s significant accounting policies with references to notes providing additional information on such policies and critical accounting estimates relating to such policies. Accounting Policy Note Insurance 3 Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles 4 Reinsurance 5 Investments 6 Derivatives 7 Fair Value 8 Income Tax 11 Litigation Contingencies 12 Insurance Future Policy Benefit Liabilities and Policyholder Account Balances The Company establishes liabilities for future amounts payable under insurance policies. Insurance liabilities are generally calculated as the present value of future expected benefits to be paid, reduced by the present value of future expected premiums. Such liabilities are established based on methods and underlying assumptions that are in accordance with GAAP and applicable actuarial standards. The principal assumptions used in the establishment of liabilities for future policy benefits are mortality, policy lapse, policy renewal, investment returns, inflation, expenses and other contingent events as appropriate to the respective product type. These assumptions are established at the time the policy is issued and locked in and are intended to estimate the experience for the period the policy benefits are payable. Utilizing these assumptions, liabilities are established on a block of business basis. For long duration insurance contracts, assumptions such as mortality and interest rates are locked in upon the issuance of new business. However, significant adverse changes in experience on such contracts may require the establishment of premium deficiency reserves. Such reserves are determined based on the then current assumptions and do not include a provision for adverse deviation. The Company regularly reviews its estimates of liabilities for future policy benefits and compares them with its actual experience. Differences result in changes to the liability balances with related charges or credits to benefit expenses in the period in which the changes occur. Policyholder account balances relate to customer deposits on universal life insurance and fixed and variable deferred annuity contracts and are equal to the sum of deposits, plus interest credited, less charges and withdrawals. The Company issues directly, certain variable annuity products with guaranteed minimum benefits that provide the policyholder a minimum return based on their initial deposit (i.e., the benefit base) less withdrawals. These guarantees are accounted for as insurance liabilities or as embedded derivatives depending on how and when the benefit is paid. Specifically, a guarantee is accounted for as an embedded derivative if a guarantee is paid without requiring (i) the occurrence of specific insurable event, or (ii) the policyholder to annuitize. Alternatively, a guarantee is accounted for as an insurance liability if the guarantee is paid only upon either (i) the occurrence of a specific insurable event, or (ii) annuitization. In certain cases, a guarantee may have elements of both an insurance liability and an embedded derivative and in such cases the guarantee is split and accounted for under both models. Guarantees accounted for as insurance liabilities in future policy benefits include guaranteed minimum death benefits (“GMDBs”), the portion of guaranteed minimum income benefits (“GMIBs”) that require annuitization, and the life-contingent portion of guaranteed minimum withdrawal benefits (“GMWBs”). Guarantees accounted for as embedded derivatives in policyholder account balances include the non life-contingent portion of GMWBs, guaranteed minimum accumulation benefits (“GMABs”) and the portion of GMIBs that do not require annuitization. At inception, the Company attributes to the embedded derivative a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. Any additional fees represent “excess” fees and are reported in universal life and investment-type product policy fees. Recognition of Insurance Revenues and Deposits Premiums related to traditional life insurance and annuity contracts with life contingencies are recognized as revenues when due from policyholders. Policyholder benefits and expenses are provided to recognize profits over the estimated lives of the insurance policies. When premiums are due over a significantly shorter period than the period over which policyholder benefits are incurred, any excess profit is deferred and recognized into earnings in proportion to insurance in-force or, for annuities, the amount of expected future policy benefit payments. Deposits related to universal life insurance and investment-type products are credited to policyholder account balances. Revenues from such contracts consist of asset-based investment management fees, mortality charges, risk charges, policy administration fees, and surrender charges. These fees are recognized when assessed to the contract holder and are included in universal life and investment-type product policy fees on the statements of operations. Premiums, policy fees, policyholder benefits and expenses are presented net of reinsurance. Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles The Company incurs significant costs in connection with acquiring new and renewal insurance business. Costs that are related directly to the successful acquisition or renewal of insurance contracts are capitalized as DAC. Such costs include: • incremental direct costs of contract acquisition, such as commissions; • the portion of an employee’s total compensation and benefits related to time spent selling, underwriting or processing the issuance of new and renewal insurance business only with respect to actual policies acquired or renewed; and • other essential direct costs that would not have been incurred had a policy not been acquired or renewed. All other acquisition-related costs, including those related to general advertising and solicitation, market research, agent training, product development, unsuccessful sales and underwriting efforts, as well as all indirect costs, are expensed as incurred. Value of business acquired (“VOBA”) is an intangible asset resulting from a business combination that represents the excess of book value over the estimated fair value of acquired insurance, annuity, and investment-type contracts in-force as of the acquisition date. The estimated fair value of the acquired liabilities is based on projections, by each block of business, of future policy and contract charges, premiums, mortality and morbidity, separate account performance, surrenders, operating expenses, investment returns, nonperformance risk adjustment and other factors. Actual experience on the purchased business may vary from these projections. DAC and VOBA on traditional long-duration insurance contracts is amortized based on actual and expected future gross premiums while DAC and VOBA on deferred annuities is amortized based on estimated gross profits. The recoverability of DAC and VOBA is dependent upon the future profitability of the related business. DAC and VOBA are aggregated on the financial statements for reporting purposes. See Note 4 for additional information on DAC and VOBA amortization. The recovery of DAC and VOBA is dependent upon the future profitability of the related business. DAC and VOBA are aggregated on the financial statements for reporting purposes. The Company also has deferred sales inducements (“DSI”) and value of distribution agreements (“VODA”) which are included in other assets. The Company defers sales inducements and amortizes them over the life of the policy using the same methodology and assumptions used to amortize DAC. The amortization of DSI is included in policyholder benefits and claims. VODA represents the present value of expected future profits associated with the expected future business derived from the distribution agreements acquired as part of a business combination. The VODA associated with past business combinations is amortized over useful lives ranging from 10 to 40 years and such amortization is included in other expenses. Each year, or more frequently if circumstances indicate a possible impairment issue exists, the Company reviews DSI and VODA to determine whether the assets are impaired. Reinsurance For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. Cessions under reinsurance agreements do not discharge the Company’s obligations as the primary insurer. The Company reviews all contractual features, including those that may limit the amount of insurance risk to which the reinsurer is subject or features that delay the timely reimbursement of claims. For reinsurance of existing in-force blocks of long-duration contracts that transfer significant insurance risk, the difference, if any, between the amounts paid, and the liabilities ceded related to the underlying contracts is considered the net cost of reinsurance at the inception of the reinsurance agreement. The net cost of reinsurance is recorded as an adjustment to DAC when there is a gain at inception on the ceding entity and to other liabilities when there is a loss at inception. The net cost of reinsurance is recognized as a component of other expenses when there is a gain at inception and as policyholder benefits and claims when there is a loss and is subsequently amortized on a basis consistent with the methodology used for amortizing DAC related to the underlying reinsured contracts. Subsequent amounts paid on the reinsurance of in-force blocks, as well as amounts paid related to new business, are recorded as ceded premiums and ceded premiums, reinsurance and other receivables are established. Amounts currently recoverable under reinsurance agreements are included in premiums, reinsurance and other receivables and amounts currently payable are included in other liabilities. Assets and liabilities relating to reinsurance agreements with the same reinsurer may be recorded net on the balance sheet, if a right of offset exists within the reinsurance agreement. If reinsurers do not meet their obligations to the Company under the terms of the reinsurance agreements, reinsurance recoverable balances could become uncollectible. In such instances, reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance. The funds withheld liability represents amounts withheld by the Company in accordance with the terms of the reinsurance agreements. Under certain reinsurance agreements, the Company withholds the funds rather than transferring the underlying investments and, as a result, records funds withheld liability within other liabilities. The Company recognizes interest on funds withheld, included in other expenses, at rates defined by the terms of the agreement which may be contractually specified or directly related to the investment portfolio. Premiums, fees and policyholder benefits and claims are net of reinsurance ceded. Amounts received from reinsurers for policy administration are reported in other revenues. With respect to GMIBs, a portion of the directly written GMIBs are accounted for as insurance liabilities, but the reinsured portions of these guarantees are accounted for as embedded derivatives. These embedded derivatives are included in premiums, reinsurance and other receivables with changes in estimated fair value reported in net derivative gains (losses). If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Deposits received are included in other liabilities and deposits made are included within premiums, reinsurance and other receivables. As amounts are paid or received, consistent with the underlying contracts, the deposit assets or liabilities are adjusted. Interest on such deposits is recorded as other revenues or other expenses, as appropriate. Periodically, the Company evaluates the adequacy of the expected payments or recoveries and adjusts the deposit asset or liability through other revenues or other expenses, as appropriate. Investments Net Investment Income and Net Investment Gains (Losses) Income from investments is reported within net investment income, unless otherwise stated herein. Gains and losses on sales of investments, impairment losses and changes in valuation allowances are reported within net investment gains (losses), unless otherwise stated herein. Fixed Maturity Securities The Company’s fixed maturity securities are classified as available-for-sale (“AFS”) and are reported at their estimated fair value. Unrealized investment gains and losses on these securities are recorded as a separate component of other comprehensive income (loss) (“OCI”), net of policy-related amounts and deferred income taxes. All security transactions are recorded on a trade date basis. Investment gains and losses on sales are determined on a specific identification basis. Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect to amortization of premiums and accretion of discounts and is based on the estimated economic life of the securities, which for residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”) and asset-backed securities (“ABS”) (collectively, “Structured Securities”) considers the estimated timing and amount of prepayments of the underlying loans. The amortization of premium and accretion of discount of fixed maturity securities also takes into consideration call and maturity dates. Amortization of premium and accretion of discount on Structured Securities considers the estimated timing and amount of prepayments of the underlying loans. Actual prepayment experience is periodically reviewed and effective yields are recalculated when differences arise between the originally anticipated and the actual prepayments received and currently anticipated. Prepayment assumptions for Structured Securities are estimated using inputs obtained from third-party specialists and based on management’s knowledge of the current market. For credit-sensitive Structured Securities and certain prepayment-sensitive securities, the effective yield is recalculated on a prospective basis. For all other Structured Securities, the effective yield is recalculated on a retrospective basis The Company periodically evaluates fixed maturity securities for impairment. The assessment of whether impairments have occurred is based on management’s case-by-case evaluation of the underlying reasons for the decline in estimated fair value, as well as an analysis of the gross unrealized losses by severity and/or age. See Note 6 “— Evaluation of AFS Securities for OTTI and Evaluating Temporarily Impaired AFS Securities.” For fixed maturity securities in an unrealized loss position, an other-than-temporary impairment (“OTTI”) is recognized in earnings when it is anticipated that the amortized cost will not be recovered. When either: (i) the Company has the intent to sell the security; or (ii) it is more likely than not that the Company will be required to sell the security before recovery, the OTTI recognized in earnings is the entire difference between the security’s amortized cost and estimated fair value. If neither of these conditions exists, the difference between the amortized cost of the security and the present value of projected future cash flows expected to be collected is recognized as an OTTI in earnings (“credit loss”). If the estimated fair value is less than the present value of projected future cash flows expected to be collected, this portion of OTTI related to other-than-credit factors (“noncredit loss”) is recorded in OCI. Mortgage Loans The Company disaggregates its mortgage loan investments into two portfolio segments: commercial and agricultural. The accounting policies that are applicable to both portfolio segments are presented below and the accounting policies related to each of the portfolio segments are included in Note 6 . Mortgage loans are stated at unpaid principal balance, adjusted for any unamortized premium or discount and any deferred fees or expenses, and are net of valuation allowances. Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect to amortization of premiums and accretion of discounts. Other Invested Assets Other invested assets consist of freestanding derivatives with positive estimated fair values which are described in “— Derivatives” below. Derivatives Freestanding Derivatives Freestanding derivatives are carried on the Company’s balance sheet either as assets within other invested assets or as liabilities within other liabilities at estimated fair value. The Company does not offset the estimated fair value amounts recognized for derivatives executed with the same counterparty under the same master netting agreement. Accruals on derivatives are generally recorded in accrued investment income or within other liabilities. However, accruals that are not scheduled to settle within one year are included with the derivatives carrying value in other invested assets or other liabilities. If a derivative is not designated as an accounting hedge or its use in managing risk does not qualify for hedge accounting, changes in the estimated fair value of the derivative are reported in net derivative gains (losses). Hedge Accounting The Company primarily designates derivatives as a hedge of a forecasted transaction or a variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”). When a derivative is designated as a cash flow hedge and is determined to be highly effective, changes in fair value are recorded in OCI and subsequently reclassified into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item. To qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk management objective and strategy for undertaking the hedging transaction, as well as its designation of the hedge. In its hedge documentation, the Company sets forth how the hedging instrument is expected to hedge the designated risks related to the hedged item and sets forth the method that will be used to retrospectively and prospectively assess the hedging instrument’s effectiveness and the method that will be used to measure ineffectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and at least quarterly throughout the life of the designated hedging relationship The Company discontinues hedge accounting prospectively when: (i) it is determined that the derivative is no longer highly effective in offsetting changes in the cash flows of a hedged item; (ii) the derivative expires, is sold, terminated, or exercised; (iii) it is no longer probable that the hedged forecasted transaction will occur; or (iv) the derivative is de-designated as a hedging instrument. When hedge accounting is discontinued because it is determined that the derivative is not highly effective in offsetting changes in the cash flows of a hedged item, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized in net derivative gains (losses). Provided the hedged forecasted transaction is still probable of occurrence, the changes in estimated fair value of derivatives recorded in OCI related to discontinued cash flow hedges are released into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item. In all other situations in which hedge accounting is discontinued, the derivative is carried at its estimated fair value on the balance sheet, with changes in its estimated fair value recognized in the current period as net derivative gains (losses). Embedded Derivatives The Company sells variable annuities and is a party to certain reinsurance agreements that have embedded derivatives. The Company assesses each identified embedded derivative to determine whether it is required to be bifurcated. The embedded derivative is bifurcated from the host contract and accounted for as a freestanding derivative if: • the combined instrument is not accounted for in its entirety at estimated fair value with changes in estimated fair value recorded in earnings; • the terms of the embedded derivative are not clearly and closely related to the economic characteristics of the host contract; and • a separate instrument with the same terms as the embedded derivative would qualify as a derivative instrument. Such embedded derivatives are carried on the balance sheet at estimated fair value with the host contract and changes in their estimated fair value are generally reported in net derivative gains (losses). If the Company is unable to properly identify and measure an embedded derivative for separation from its host contract, the entire contract is carried on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income. Additionally, the Company may elect to carry an entire contract on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income if that contract contains an embedded derivative that requires bifurcation. At inception, the Company attributes to the embedded derivative a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. Any additional fees represent “excess” fees and are reported in universal life and investment-type product policy fees. Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. In most cases, the exit price and the transaction (or entry) price will be the same at initial recognition. In determining the estimated fair value of the Company’s investments, fair values are based on unadjusted quoted prices for identical investments in active markets that are readily and regularly obtainable. When such quoted prices are not available, fair values are based on quoted prices in markets that are not active, quoted prices for similar but not identical investments, or other observable inputs. If these inputs are not available, or observable inputs are not determinable, unobservable inputs and/or adjustments to observable inputs requiring management judgment are used to determine the estimated fair value of investments. Income Tax Income taxes as presented herein attribute current and deferred income taxes of MetLife, Inc., for periods up until the Separation, to Brighthouse Financial, Inc. and its subsidiaries in a manner that is systematic, rational and consistent with the asset and liability method prescribed by the Financial Accounting Standards Board (“FASB”) guidance Accounting Standards Codification 740 - Income Taxes (“ASC 740”). The Company’s income tax provision was prepared following the modified separate return method. The modified separate return method applies ASC 740 to the standalone financial statements of each member of the consolidated group as if the group member were a separate taxpayer and a standalone enterprise, after providing benefits for losses. The Company’s accounting for income taxes represents management’s best estimate of various events and transactions. Deferred tax assets and liabilities resulting from temporary differences between the financial reporting and tax bases of assets and liabilities are measured at the balance sheet date using enacted tax rates expected to apply to taxable income in the years the temporary differences are expected to reverse. The realization of deferred tax assets depends upon the existence of sufficient taxable income within the carryback or carryforward periods under the tax law in the applicable tax jurisdiction. Valuation allowances are established when management determines, based on available information, that it is more likely than not that deferred income tax assets will not be realized. Significant judgment is required in determining whether valuation allowances should be established, as well as the amount of such allowances. When making such determination, the Company considers many factors, including: • the nature, frequency, and amount of cumulative financial reporting income and losses in recent years; • the jurisdiction in which the deferred tax asset was generated; • the length of time that carryforward can be utilized in the various taxing jurisdiction; • future taxable income exclusive of reversing temporary differences and carryforwards; • future reversals of existing taxable temporary differences; • taxable income in prior carryback years; and • tax planning strategies. The Company may be required to change its provision for income taxes when estimates used in determining valuation allowances on deferred tax assets significantly change or when receipt of new information indicates the need for adjustment in valuation allowances. Additionally, the effect of changes in tax laws, tax regulations, or interpretations of such laws or regulations, is recognized in net income tax expense (benefit) in the period of change. The Company determines whether it is more likely than not that a tax position will be sustained upon examination by the appropriate taxing authorities before any part of the benefit can be recorded on the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement. Unrecognized tax benefits due to tax uncertainties that do not meet the threshold are included within other liabilities and are charged to earnings in the period that such determination is made. The Company classifies interest recognized as interest expense and penalties recognized as a component of income tax expense. On December 22, 2017, President Trump signed the Tax Cuts and Jobs Act (“the Tax Act”) into law. The Tax Act reduced the corporate tax rate to 21%, reduced interest expense deductibility, increased capitalization amounts for deferred acquisition costs, eliminated the corporate alternative minimum tax, provided for determining reserve deductions as 92.81% of statutory reserves, and reduced the dividend received deduction. Most of the changes in the Tax Act are effective as of January 1, 2018. The reduction in the corporate rate required a one-time remeasurement of certain deferred tax items as of December 31, 2017. For the estimated impact of the Tax Act on the financial statements, including the estimated impact resulting from the remeasurement of deferred tax assets and liabilities, see Note 13 for more information. Actual results may materially differ from the Company’s current estimate due to, among other things, further guidance that may be issued by U.S. tax authorities or regulatory bodies and/or changes in interpretations and assumptions preliminarily made. The Company will continue to analyze the Tax Act to finalize its financial statement impact. In December 2017, the SEC issued Staff Accounting Bulletin (“SAB”) 118, addressing the application of GAAP in situations when a registrant does not have necessary information available to complete the accounting for certain income tax effects of the Tax Act. SAB 118 provides guidance for registrants under three scenarios: (1) the measurement of certain income tax effects is complete, (2) the measurement of certain income tax effects can be reasonably estimated, and (3) the measurement of certain income tax effects cannot be reasonably estimated. SAB 118 provides that the measurement period is complete when a company’s accounting is complete. The measurement period cannot extend beyond one year from the enactment date. SAB 118 acknowledges tha |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | 2. Segment Information The Company is organized into two segments: Annuities and Life. In addition, the Company reports certain of its results of operations in Corporate & Other. Annuities The Annuities segment consists of a variety of variable, fixed, index-linked and income annuities designed to address contract holders’ needs for protected wealth accumulation on a tax-deferred basis, wealth transfer and income security. Life The Life segment consists of life insurance products and services, including term, universal and whole life designed to address policyholders’ needs for financial security and protected wealth transfer, which may be provided on a tax-advantaged basis. Corporate & Other Corporate & Other contains the excess capital not allocated to the segments and expenses associated with certain legal proceedings, as well as income tax audit issues. Corporate & Other also includes the elimination of intersegment amounts and a portion of MetLife’s former U.S. insurance business sold direct to consumers, which is no longer being offered for new sales. Financial Measures and Segment Accounting Policies Adjusted earnings is a financial measure used by management to evaluate performance, allocate resources and facilitate comparisons to industry results. Consistent with GAAP guidance for segment reporting, adjusted earnings is also used to measure segment performance. The Company believes the presentation of adjusted earnings, as the Company measures it for management purposes, enhances the understanding of its performance by highlighting the results of operations and the underlying profitability drivers of the business. Adjusted earnings should not be viewed as a substitute for net income (loss). Adjusted earnings, which may be positive or negative, focuses on the Company’s primary businesses principally by excluding the impact of market volatility, which could distort trends, and revenues costs related to non-core products. The following are the significant items excluded from total revenues in calculating adjusted earnings: • Net investment gains (losses); • Net derivative gains (losses) except earned income on derivatives and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments, but do not qualify for hedge accounting treatment; and • Amortization of unearned revenue related to net investment gains (losses) and net derivative gains (losses) and certain variable annuity GMIB fees (“GMIB Fees”). The following are the significant items excluded from total expenses in calculating adjusted earnings : • Amounts associated with benefits and hedging costs related to GMIBs (“GMIB Costs”); • Amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets and market value adjustments associated with surrenders or terminations of contracts (“Market Value Adjustments”) ; and • Amortization of DAC and VOBA related to: (i) net investment gains (losses), (ii) net derivative gains (losses), (iii) GMIB Fees and GMIB Costs and (iv) Market Value Adjustments. The tax impact of the adjustments mentioned above are calculated net of the U.S. statutory tax rate, which could differ from the Company’s effective tax rate. Set forth in the tables below is certain financial information with respect to the Company’s segments, as well as Corporate & Other, for the years ended December 31, 2017 , 2016 and 2015 and at December 31, 2017 and 2016 . The segment accounting policies are the same as those used to prepare the Company’s financial statements, except for adjusted earnings adjustments as defined above. In addition, segment accounting policies include the method of capital allocation described below. The internal capital model is a risk capital model that reflects management’s judgment and view of required capital to represent the measurement of the risk profile of the business, to meet the Company’s long term promises to clients, to service long-term obligations and to support the credit ratings of the Company. It accounts for the unique and specific nature of the risks inherent in the Company’s business. Management is responsible for the ongoing production and enhancement of the internal capital model and reviewed its approach periodically to ensure that it remained consistent with emerging industry practice standards. Beginning in 2018, the Company will allocate equity to the segments based on its new statutory capital oriented internal capital allocation model, which considers capital requirements and aligns with emerging standards and consistent risk principles. In 2017 and prior years, segment net investment income was credited or charged based on the level of allocated equity; however, changes in allocated equity do not impact the Company’s net investment income or net income (loss). Going forward, investment portfolios will be funded to support both liabilities and allocated surplus of each segment, requiring no allocated equity adjustments to net investment income. The impact to segment results is not expected to be material. Net investment income is based upon the actual results of each segment’s specifically identifiable investment portfolios adjusted for allocated equity. Other costs are allocated to each of the segments based upon: (i) a review of the nature of such costs; (ii) time studies analyzing the amount of employee time incurred by each segment; and (iii) cost estimates included in the Company’s product pricing. Operating Results Year Ended December 31, 2017 Annuities Life Corporate Total (In thousands) Pre-tax adjusted earnings $ 65,637 $ 2,692 $ 6,824 $ 75,153 Provision for income tax expense (benefit) 16,104 1,533 (74,929 ) (57,292 ) Adjusted earnings $ 49,533 $ 1,159 $ 81,753 132,445 Adjustments for: Net investment gains (losses) (1,178 ) Net derivative gains (losses) (157,222 ) Other adjustments to net income 34,307 Provision for income tax (expense) benefit 43,433 Net income (loss) $ 51,785 Interest revenue $ 57,142 $ 19,078 $ 10,433 At December 31, 2017 Annuities Life Corporate & Other Total (In thousands) Total assets $ 7,219,139 $ 662,546 $ 604,620 $ 8,486,305 Separate account assets $ 5,021,633 $ — $ — $ 5,021,633 Separate account liabilities $ 5,021,633 $ — $ — $ 5,021,633 Operating Results Year Ended December 31, 2016 Annuities Life Corporate Total (In thousands) Pre-tax adjusted earnings $ 52,855 $ 40,561 $ 9,665 $ 103,081 Provision for income tax expense (benefit) 14,623 14,197 3,014 31,834 Adjusted earnings $ 38,232 $ 26,364 $ 6,651 $ 71,247 Adjustments for: Net investment gains (losses) (3,737 ) Net derivative gains (losses) 67,726 Other adjustments to net income (34,508 ) Provision for income tax (expense) benefit (10,318 ) Net income (loss) $ 90,410 Interest revenue $ 27,747 $ 17,108 $ 13,204 At December 31, 2016 Annuities Life Corporate Total (In thousands) Total assets $ 6,708,803 $ 342,592 $ 581,651 $ 7,633,046 Separate account assets $ 4,758,449 $ — $ — $ 4,758,449 Separate account liabilities $ 4,758,449 $ — $ — $ 4,758,449 Operating Results Year Ended December 31, 2015 Annuities Life Corporate Total (In thousands) Pre-tax adjusted earnings $ 20,794 (60,934 ) $ 11,842 $ (28,298 ) Provision for income tax expense (benefit) 1,139 (21,327 ) 3,493 (16,695 ) Adjusted earnings $ 19,655 $ (39,607 ) $ 8,349 $ (11,603 ) Adjustments for: Net investment gains (losses) 4,399 Net derivative gains (losses) 65,000 Other adjustments to net income (16,018 ) Provision for income tax (expense) benefit (18,683 ) Net income (loss) $ 23,095 Interest revenue $ 23,210 $ 15,432 $ 14,516 The following table presents total revenues with respect to the Company’s segments, as well as Corporate & Other: Years Ended December 31, 2017 2016 2015 (In thousands) Annuities $ 106,762 $ 125,308 $ 139,102 Life 36,646 86,089 56,322 Corporate & Other 12,789 15,135 16,771 Adjustments (144,532 ) 78,168 83,460 Total $ 11,665 $ 304,700 $ 295,655 The following table presents total premiums, universal life and investment-type product policy fees and other revenues by major product groups of the Company’s segments, as well as Corporate & Other: Years Ended December 31, 2017 2016 2015 (In thousands) Annuity products $ 63,813 $ 112,018 $ 130,167 Life insurance products 19,925 70,913 43,145 Total $ 83,738 $ 182,931 $ 173,312 All of the Company’s premiums, universal life and investment-type product policy fees and other revenues originated in the U.S. Revenues derived from any customer did not exceed 10% of premiums, universal life and investment-type product policy fees and other revenues for the years ended December 31, 2017 , 2016 and 2015 . |
Insurance
Insurance | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Insurance | 3. Insurance Insurance Liabilities Insurance liabilities, including affiliated insurance liabilities on reinsurance ceded, are comprised of future policy benefits, policyholder account balances and other policy-related balances. Information regarding insurance liabilities by segment, as well as Corporate & Other, was as follows at: December 31, 2017 2016 (In thousands) Annuities $ 1,675,039 $ 1,504,773 Life 346,084 322,319 Corporate & Other 8,986 9,550 Total $ 2,030,109 $ 1,836,642 See Note 5 for discussion of affiliated reinsurance liabilities included in the table above. Future policy benefits are measured as follows: Product Type: Measurement Assumptions: Nonparticipating life insurance Aggregate of the present value of expected future benefit payments and related expenses less the present value of expected future net premiums. Assumptions as to mortality and persistency are based upon the Company’s experience when the basis of the liability is established. Interest rate assumptions for the aggregate future policy benefit liabilities range from 3% to 5%. Individual and group fixed annuities after annuitization Present value of expected future payments. Interest rate assumptions used in establishing such liabilities range from 3% to 6%. Policyholder account balances are equal to: (i) policy account values, which consist of an accumulation of gross premium payments; and (ii) credited interest, ranging from 1% to 7% , less expenses, mortality charges and withdrawals. Guarantees The Company issues variable annuity products with guaranteed minimum benefits. GMABs, the non-life-contingent portion of GMWBs and the portion of certain GMIBs that do not require annuitization are accounted for as embedded derivatives in policyholder account balances and are further discussed in Note 7 . Guarantees accounted for as insurance liabilities include: Guarantee: Measurement Assumptions: GMDBs • A return of purchase payment upon death even if the account value is reduced to zero. • Present value of expected death benefits in excess of the projected account balance recognizing the excess ratably over the accumulation period based on the present value of total expected assessments. • An enhanced death benefit may be available for an additional fee. • Assumptions are consistent with those used for amortizing DAC, and are thus subject to the same variability and risk. • Investment performance and volatility assumptions are consistent with the historical experience of the appropriate underlying equity index, such as the Standard & Poor’s Global Ratings (“S&P”) 500 Index. • Benefit assumptions are based on the average benefits payable over a range of scenarios. GMIBs • After a specified period of time determined at the time of issuance of the variable annuity contract, a minimum accumulation of purchase payments, even if the account value is reduced to zero, that can be annuitized to receive a monthly income stream that is not less than a specified amount. • Present value of expected income benefits in excess of the projected account balance at any future date of annuitization and recognizing the excess ratably over the accumulation period based on present value of total expected assessments. • Certain contracts also provide for a guaranteed lump sum return of purchase premium in lieu of the annuitization benefit. • Assumptions are consistent with those used for estimating GMDB liabilities. • Calculation incorporates an assumption for the percentage of the potential annuitizations that may be elected by the contract holder. GMWBs • A return of purchase payment via partial withdrawals, even if the account value is reduced to zero, provided that cumulative withdrawals in a contract year do not exceed a certain limit. • Expected value of the life contingent payments and expected assessments using assumptions consistent with those used for estimating the GMDB liabilities. • Certain contracts include guaranteed withdrawals that are life contingent. Information regarding the liabilities for guarantees (excluding base policy liabilities and embedded derivatives) relating to annuity contracts was as follows: Annuity Contracts GMDBs GMIBs Total (In thousands) Direct Balance at January 1, 2015 $ 7,152 $ 96,726 $ 103,878 Incurred guaranteed benefits 1,175 20,004 21,179 Paid guaranteed benefits (238 ) — (238 ) Balance at December 31, 2015 8,089 116,730 124,819 Incurred guaranteed benefits 2,272 32,338 34,610 Paid guaranteed benefits (560 ) 1 (559 ) Balance at December 31, 2016 9,801 149,069 158,870 Incurred guaranteed benefits 2,675 22,559 25,234 Paid guaranteed benefits (11 ) — (11 ) Balance at December 31, 2017 $ 12,465 $ 171,628 $ 184,093 Ceded Balance at January 1, 2015 $ 7,152 $ 32,487 $ 39,639 Incurred guaranteed benefits 1,664 7,433 9,097 Paid guaranteed benefits (238 ) — (238 ) Balance at December 31, 2015 8,578 39,920 48,498 Incurred guaranteed benefits 2,215 11,570 13,785 Paid guaranteed benefits (560 ) — (560 ) Balance at December 31, 2016 10,233 51,490 61,723 Incurred guaranteed benefits 2,547 9,386 11,933 Paid guaranteed benefits (11 ) — (11 ) Balance at December 31, 2017 $ 12,769 $ 60,876 $ 73,645 Net Balance at January 1, 2015 $ — $ 64,239 $ 64,239 Incurred guaranteed benefits (489 ) 12,571 12,082 Paid guaranteed benefits — — — Balance at December 31, 2015 (489 ) 76,810 76,321 Incurred guaranteed benefits 57 20,768 20,825 Paid guaranteed benefits — 1 1 Balance at December 31, 2016 (432 ) 97,579 97,147 Incurred guaranteed benefits 128 13,173 13,301 Paid guaranteed benefits — — — Balance at December 31, 2017 $ (304 ) $ 110,752 $ 110,448 Information regarding the Company’s guarantee exposure was as follows at: December 31, 2017 2016 In the Event of Death At Annuitization In the Event of Death At Annuitization (Dollars in thousands) Annuity Contracts (1), (2) Variable Annuity Guarantees Total account value (3) $ 5,026,927 $ 4,149,482 $ 4,763,943 $ 3,969,485 Separate account value $ 5,020,107 $ 4,149,482 $ 4,753,638 $ 3,968,482 Net amount at risk $ 5,262 (4) $ 166,788 (5) $ 36,827 (4) $ 209,926 (5) Average attained age of contract holders 66 years 66 years 66 years 65 years ______________ (1) The Company’s annuity contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive. (2) Includes direct business, but excludes offsets from hedging or reinsurance, if any. Therefore, the net amount at risk presented reflects the economic exposures of living and death benefit guarantees associated with variable annuities, but not necessarily their impact on the Company. See Note 7 for a discussion of guaranteed minimum benefits which have been reinsured. (3) Includes the contract holder’s investments in the general account and separate account, if applicable. (4) Defined as the death benefit less the total account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date and includes any additional contractual claims associated with riders purchased to assist with covering income taxes payable upon death. (5) Defined as the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company’s potential economic exposure to such guarantees in the event all contract holders were to annuitize on the balance sheet date, even though the contracts contain terms that allow annuitization of the guaranteed amount only after the 10th anniversary of the contract, which not all contract holders have achieved. Account balances of contracts with guarantees were invested in separate account asset classes as follows at: December 31, 2017 2016 (In thousands) Fund Groupings: Balanced $ 3,099,888 $ 2,945,952 Equity 1,513,408 1,403,276 Bond 359,929 359,993 Money Market 48,408 49,228 Total $ 5,021,633 $ 4,758,449 |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net [Abstract] | |
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles | 4. Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles See Note 1 for a description of capitalized acquisition costs. Nonparticipating and Non-Dividend-Paying Traditional Contracts The Company amortizes DAC and VOBA related to these contracts (primarily term insurance) over the appropriate premium paying period in proportion to the actual and expected future gross premiums that were set at contract issue. The expected premiums are based upon the premium requirement of each policy and assumptions for mortality, persistency and investment returns at policy issuance, or policy acquisition (as it relates to VOBA), include provisions for adverse deviation, and are consistent with the assumptions used to calculate future policy benefit liabilities. These assumptions are not revised after policy issuance or acquisition unless the DAC or VOBA balance is deemed to be unrecoverable from future expected profits. Absent a premium deficiency, variability in amortization after policy issuance or acquisition is caused only by variability in premium volumes. Fixed and Variable Deferred Annuity Contracts The Company amortizes DAC and VOBA related to these contracts over the estimated lives of the contracts in proportion to actual and expected future gross profits. The amortization includes interest based on rates in effect at inception or acquisition of the contracts. The amount of future gross profits is dependent principally upon returns in excess of the amounts credited to policyholders, mortality, persistency, interest crediting rates, expenses to administer the business, creditworthiness of reinsurance counterparties, the effect of any hedges used and certain economic variables, such as inflation. Of these factors, the Company anticipates that investment returns, expenses and persistency are reasonably likely to significantly impact the rate of DAC and VOBA amortization. Each reporting period, the Company updates the estimated gross profits with the actual gross profits for that period. When the actual gross profits change from previously estimated gross profits, the cumulative DAC and VOBA amortization is re-estimated and adjusted by a cumulative charge or credit to current operations. When actual gross profits exceed those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the actual gross profits are below the previously estimated gross profits. Each reporting period, the Company also updates the actual amount of business remaining in-force, which impacts expected future gross profits. When expected future gross profits are below those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the expected future gross profits are above the previously estimated expected future gross profits. Each period, the Company also reviews the estimated gross profits for each block of business to determine the recoverability of DAC and VOBA balances. Factors Impacting Amortization Separate account rates of return on variable deferred annuity contracts affect in-force account balances on such contracts each reporting period, which can result in significant fluctuations in amortization of DAC and VOBA. Returns that are higher than the Company’s long-term expectation produce higher account balances, which increases the Company’s future fee expectations and decreases future benefit payment expectations on minimum death and living benefit guarantees, resulting in higher expected future gross profits. The opposite result occurs when returns are lower than the Company’s long-term expectation. The Company’s practice to determine the impact of gross profits resulting from returns on separate accounts assumes that long-term appreciation in equity markets is not changed by short-term market fluctuations, but is only changed when sustained interim deviations are expected. The Company monitors these events and only changes the assumption when its long-term expectation changes. The Company also periodically reviews other long-term assumptions underlying the projections of estimated gross profits. These assumptions primarily relate to investment returns, interest crediting rates, mortality, persistency and expenses to administer business. Management annually updates assumptions used in the calculation of estimated gross profits which may have significantly changed. If the update of assumptions causes expected future gross profits to increase, DAC and VOBA amortization will generally decrease, resulting in a current period increase to earnings. The opposite result occurs when the assumption update causes expected future gross profits to decrease. Periodically, the Company modifies product benefits, features, rights or coverages that occur by the exchange of a contract for a new contract, or by amendment, endorsement, or rider to a contract, or by election or coverage within a contract. If such modification, referred to as an internal replacement, substantially changes the contract, the associated DAC or VOBA is written off immediately through income and any new deferrable costs associated with the replacement contract are deferred. If the modification does not substantially change the contract, the DAC or VOBA amortization on the original contract will continue and any acquisition costs associated with the related modification are expensed. Amortization of DAC and VOBA is attributed to net investment gains (losses) and net derivative gains (losses), and to other expenses for the amount of gross profits originating from transactions other than investment gains and losses. Unrealized investment gains and losses represent the amount of DAC and VOBA that would have been amortized if such gains and losses had been recognized. Information regarding DAC and VOBA was as follows: Years Ended December 31, 2017 2016 2015 (In thousands) DAC Balance at January 1, $ 85,032 $ 107,474 $ 204,321 Capitalizations 17,089 4,976 4,768 Amortization related to: Net investment gains (losses) and net derivative gains (losses) 50,228 (12,163 ) (16,372 ) Other expenses (10,182 ) (11,155 ) (87,443 ) Total amortization 40,046 (23,318 ) (103,815 ) Unrealized investment gains (losses) (11,200 ) (4,100 ) 2,200 Balance at December 31, 130,967 85,032 107,474 VOBA Balance at January 1, 141 40 51 Amortization related to: Net investment gains (losses) and net derivative gains (losses) — — 5 Other expenses (49 ) 101 (16 ) Total amortization (49 ) 101 (11 ) Balance at December 31, 92 141 40 Total DAC and VOBA Balance at December 31, $ 131,059 $ 85,173 $ 107,514 Information regarding total DAC and VOBA by segment, as well as Corporate & Other, was as follows at: December 31, 2017 2016 (In thousands) Annuities $ 107,760 $ 60,689 Life 23,101 24,265 Corporate & Other 198 219 Total $ 131,059 $ 85,173 Information regarding other intangibles was as follows: Years Ended December 31, 2017 2016 2015 (In thousands) DSI Balance at January 1, $ 29,647 $ 37,114 $ 41,176 Capitalization 155 350 452 Amortization (479 ) (7,017 ) (5,014 ) Unrealized investment gains (losses) (2,400 ) (800 ) 500 Balance at December 31, $ 26,923 $ 29,647 $ 37,114 VODA Balance at January 1, $ 9,862 $ 11,222 $ 12,616 Amortization (1,283 ) (1,360 ) (1,394 ) Balance at December 31, $ 8,579 $ 9,862 $ 11,222 Accumulated amortization $ 10,935 $ 9,652 $ 8,292 The estimated future amortization expense to be reported in other expenses for the next five years is as follows: VOBA VODA (In thousands) 2018 $ 46 $ 1,184 2019 $ 46 $ 1,073 2020 $ — $ 956 2021 $ — $ 841 2022 $ — $ 730 |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2017 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | 5. Reinsurance The Company enters into reinsurance agreements primarily as a purchaser of reinsurance for its various insurance products. The Company participates in reinsurance activities in order to limit losses, minimize exposure to significant risks and provide additional capacity for future growth. Accounting for reinsurance requires extensive use of assumptions and estimates, particularly related to the future performance of the underlying business and the potential impact of counterparty credit risks. The Company periodically reviews actual and anticipated experience compared to the aforementioned assumptions used to establish assets and liabilities relating to ceded and assumed reinsurance and evaluates the financial strength of counterparties to its reinsurance agreements using criteria similar to that evaluated in the security impairment process discussed in Note 6 . Annuities For annuities, the Company currently reinsures to its parent Brighthouse Life Insurance Company and formerly reinsured to MLIC, 100% of the certain variable annuity risks or 100% of the living and death benefit guarantees issued in connection with variable annuities. Under the benefit guarantees reinsurance agreements, the Company pays a reinsurance premium generally based on fees associated with the guarantees collected from policyholders, and receives reimbursement for benefits paid or accrued in excess of account values, subject to certain limitations. Life For its individual life insurance products, the Company has historically reinsured the mortality risk primarily on an excess of retention basis or on a quota share basis. The Company currently retains up to $100,000 per life and reinsures 100% of amounts in excess of the amount the Company retains. In addition to reinsuring mortality risk as described above, the Company reinsures other risks, as well as specific coverages. Placement of reinsurance is done primarily on an automatic basis and also on a facultative basis for risks with specified characteristics. The Company evaluates its reinsurance programs routinely and may increase or decrease its retention at any time. Catastrophe Coverage The Company has exposure to catastrophes, which could contribute to significant fluctuations in the Company’s results of operations. The Company uses excess of retention and quota share reinsurance agreements to provide greater diversification of risk and minimize exposure to larger risks. Reinsurance Recoverables The Company reinsures its business through a diversified group of reinsurers. The Company analyzes recent trends in arbitration and litigation outcomes in disputes, if any, with its reinsurers. The Company monitors ratings and evaluates the financial strength of its reinsurers by analyzing their financial statements. In addition, the reinsurance recoverable balance due from each reinsurer is evaluated as part of the overall monitoring process. Recoverability of reinsurance recoverable balances is evaluated based on these analyses. The Company generally secures large reinsurance recoverable balances with various forms of collateral, including secured trusts and irrevocable letters of credit. These reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance, which at both December 31, 2017 and 2016 , were not significant. The Company has secured certain reinsurance recoverable balances with irrevocable letters of credit. The Company had $17.0 million and $11.9 million of unsecured reinsurance recoverable balances with third-parties at December 31, 2017 and 2016 , respectively. At December 31, 2017 , the Company had $17.1 million of net ceded reinsurance recoverables with third-parties. Of this total, $15.0 million , or 88% , were with the Company’s five largest ceded reinsurers, all of which were unsecured. At December 31, 2016 , the Company had $11.9 million of net ceded reinsurance recoverables with third-parties. Of this total, $10.5 million , or 88% , were with the Company’s five largest ceded reinsurers, all of which were unsecured. The amounts on the statements of operations include the impact of reinsurance. Information regarding the significant effects of reinsurance was as follows: Years Ended December 31, 2017 2016 2015 (In thousands) Premiums Direct premiums $ 93,196 $ 109,733 $ 122,110 Reinsurance ceded (66,928 ) (58,994 ) (50,238 ) Net premiums $ 26,268 $ 50,739 $ 71,872 Universal life and investment-type product policy fees Direct universal life and investment-type product policy fees $ 107,605 $ 106,830 $ 114,850 Reinsurance ceded (3,869 ) (3,830 ) (3,945 ) Net universal life and investment-type product policy fees $ 103,736 $ 103,000 $ 110,905 Other revenues Direct other revenues $ 13,016 $ 12,494 $ 12,754 Reinsurance ceded (59,282 ) 16,698 (22,219 ) Net other revenues $ (46,266 ) $ 29,192 $ (9,465 ) Policyholder benefits and claims Direct policyholder benefits and claims $ 105,551 $ 128,420 $ 138,574 Reinsurance ceded (110,325 ) (76,440 ) (89,174 ) Net policyholder benefits and claims $ (4,774 ) $ 51,980 $ 49,400 The amounts on the balance sheets include the impact of reinsurance. Information regarding the significant effects of reinsurance was as follows at: December 31, 2017 2016 Direct Ceded Total Direct Ceded Total (In thousands) Assets Premiums, reinsurance and other receivables $ 20,852 $ 551,757 $ 572,609 $ 19,005 $ 335,934 $ 354,939 Liabilities Other policy-related balances $ 12,733 $ — $ 12,733 $ 7,285 $ — $ 7,285 Other liabilities $ 21,643 $ 449,487 $ 471,130 $ 10,637 $ 101,804 $ 112,441 Reinsurance agreements that do not expose the Company to a reasonable possibility of a significant loss from insurance risk are recorded using the deposit method of accounting. Deposit assets and deposit liabilities, if any, are the result of related party reinsurance transactions. See “— Related Party Reinsurance Transactions.” Related Party Reinsurance Transactions The Company has reinsurance agreements with its parent, Brighthouse Life Insurance Company, and certain MetLife, Inc. subsidiaries, including MLIC and MetLife Reinsurance Company of Vermont (“MRV”), all of which were related parties at December 31, 2017. Information regarding the significant effects of related party reinsurance included on the statements of operations was as follows: Years Ended December 31, 2017 2016 2015 (In thousands) Premiums Reinsurance ceded $ (51,944 ) $ (44,259 ) $ (37,119 ) Universal life and investment-type product policy fees Reinsurance ceded $ (3,680 ) $ (3,645 ) $ (3,784 ) Other revenues Reinsurance ceded $ (59,272 ) $ 16,701 $ (22,212 ) Policyholder benefits and claims Reinsurance ceded $ (99,990 ) $ (71,948 ) $ (76,410 ) Information regarding the significant effects of ceded related party reinsurance included on the balance sheets was as follows at: December 31, 2017 2016 (In thousands) Assets Premiums, reinsurance and other receivables $ 533,388 $ 321,868 Liabilities Other liabilities $ 448,210 $ 99,641 The Company ceded risks to Brighthouse Life Insurance Company related to guaranteed minimum benefit guarantees written directly by the Company. These ceded reinsurance agreements contain embedded derivatives and changes in their estimated fair value are included within net derivative gains (losses). The embedded derivatives associated with the cessions are included within premiums, reinsurance and other receivables and were $307.7 million and $211.2 million at December 31, 2017 and 2016 , respectively. Net derivative gains (losses) associated with the embedded derivatives were ($73.6) million , $24.2 million and $12.5 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The Company ceded 100% of certain variable annuities including guaranteed minimum benefit on a modified coinsurance basis to MLIC. In January 2017, the Company executed a novation and reassigned this reinsurance agreement with Brighthouse Life Insurance Company, as reinsurer. These transactions were treated as a termination of the existing reinsurance agreement with recognition of a loss and a new reinsurance agreement with no recognition of a gain or loss. These transactions resulted in an increase in other liabilities of $129.8 million . The Company recognized a loss of $84.4 million , net of income tax, as a result of these transactions. Certain contractual features of this agreement qualify as embedded derivatives, which are separately accounted for at estimated fair value on the Company’s balance sheets. The embedded derivatives associated with this cession are included within premiums, reinsurance and other receivables and were $0 and $168.1 million at December 31, 2017 and 2016 , respectively. Net derivative gains (losses) associated with the embedded derivatives were ($125.1) million , $46.2 million and $54.1 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. In May 2017, the Company recaptured from MLIC risks related to multiple life products under yearly renewable term and coinsurance agreements. This recapture resulted in an increase in cash and cash equivalents of $25.6 million and a decrease in premiums, reinsurance and other receivables of $22.4 million . The Company recognized a gain of $2.1 million , net of income tax, as a result of reinsurance termination. Concurrent with the recapture from MLIC, the Company executed a reinsurance agreement with Brighthouse Life Insurance Company, as reinsurer to cede on a yearly renewable term basis risks related to multiple life products. The transaction resulted in an increase in premiums, reinsurance and other receivables of $24.7 million , an increase in other liabilities of $22.7 million a decrease in premiums of $22.7 million and a reduction in policyholder benefits and claims of $24.7 million . The Company recognized a gain of $1.3 million , net of income tax, as a result of this transaction. In December 2016, the Company recaptured level premium term business previously reinsured to MRV. This recapture resulted in a decrease in cash and cash equivalents of $27.2 million , a decrease in premiums, reinsurance and other receivables of $93.7 million and a decrease in other liabilities of $158.1 million . The Company recognized a gain of $24.2 million , net of income tax, as a result of this recapture. In November 2016, the Company recaptured certain single premium deferred annuity contracts previously reinsured to MLIC. This recapture resulted in an increase in investments and cash and cash equivalents of $933.4 million and an increase in DAC of $22.9 million , offset by a decrease in premiums, reinsurance and other receivables of $922.6 million . The Company recognized a gain of $21.9 million , net of income tax, as a result of this recapture. The Company has secured certain reinsurance recoverable balances with various forms of collateral, including secured trusts and irrevocable letters of credit. The Company had $92.6 million and $199.0 million of unsecured related party reinsurance recoverable balances at December 31, 2017 and 2016 , respectively. Related party reinsurance agreements that do not expose the Company to a reasonable possibility of a significant loss from insurance risk are recorded using the deposit method of accounting. The deposit assets on related party reinsurance were $19.6 million and $28.0 million at December 31, 2017 and 2016 , respectively. There were no deposit liabilities on related party reinsurance at both December 31, 2017 and 2016 . |
Investments Investments (Notes)
Investments Investments (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | 6. Investments See Note 8 for information about the fair value hierarchy for investments and the related valuation methodologies. Fixed Maturity Securities AFS Fixed Maturity Securities AFS by Sector The following table presents the fixed maturity securities AFS by sector. December 31, 2017 December 31, 2016 Amortized Gross Unrealized Estimated Amortized Gross Unrealized Estimated Gains Temporary OTTI Gains Temporary OTTI Losses (In thousands) Fixed maturity securities: (1) U.S. corporate $ 770,385 $ 29,246 $ 2,007 $ — $ 797,624 $ 709,694 $ 20,400 $ 8,283 $ — $ 721,811 U.S. government and agency 535,757 17,023 5,717 — 547,063 410,504 9,560 13,519 — 406,545 Foreign corporate 304,650 8,168 3,704 — 309,114 237,412 2,998 8,070 — 232,340 RMBS 217,857 5,626 1,703 — 221,780 238,676 2,033 2,322 — 238,387 CMBS 197,931 3,533 1,043 — 200,421 177,719 2,724 1,487 — 178,956 State and political subdivision 64,056 6,596 366 — 70,286 52,739 4,345 764 — 56,320 ABS 58,665 305 98 — 58,872 26,695 152 177 — 26,670 Foreign government 15,833 597 27 — 16,403 17,215 543 273 — 17,485 Total fixed maturity securities $ 2,165,134 $ 71,094 $ 14,665 $ — $ 2,221,563 $ 1,870,654 $ 42,755 $ 34,895 $ — $ 1,878,514 __________________ (1) Redeemable preferred stock is reported within U.S. corporate fixed maturity securities. Included within fixed maturity securities are Structured Securities. The Company did not hold non-income producing fixed maturity securities at both December 31, 2017 and 2016 . Maturities of Fixed Maturity Securities The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at December 31, 2017 : Due in One Year or Less Due After One Year Through Five Years Due After Five Years Through Ten Years Due After Ten Years Structured Securities Total Fixed Maturity Securities (In thousands) Amortized cost $ 40,231 $ 333,428 $ 760,665 $ 556,357 $ 474,453 $ 2,165,134 Estimated fair value $ 40,633 $ 338,857 $ 768,084 $ 592,916 $ 481,073 $ 2,221,563 Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities not due at a single maturity date have been presented in the year of final contractual maturity. Structured Securities are shown separately, as they are not due at a single maturity. Continuous Gross Unrealized Losses for Fixed Maturity Securities AFS by Sector The following table presents the estimated fair value and gross unrealized losses of fixed maturity securities AFS in an unrealized loss position, aggregated by sector and by length of time that the securities have been in a continuous unrealized loss position. December 31, 2017 December 31, 2016 Less than 12 Months Equal to or Greater Less than 12 Months Equal to or Greater Estimated Gross Estimated Gross Estimated Gross Estimated Gross (Dollars in thousands) Fixed maturity securities U.S. corporate $ 118,514 $ 898 $ 46,372 $ 1,109 $ 250,559 $ 6,667 $ 17,745 $ 1,616 U.S. government and agency 248,434 2,895 107,253 2,822 342,150 13,519 — — Foreign corporate 88,724 1,540 29,552 2,164 129,093 3,541 22,965 4,529 RMBS 24,060 162 38,454 1,541 137,470 2,089 6,822 233 CMBS 18,430 176 27,958 867 42,661 1,068 3,729 419 State and political subdivision 9,232 110 8,111 256 20,709 764 — — ABS 7,361 23 8,076 75 17,504 177 — — Foreign government 4,484 27 — — 7,189 148 868 125 Total fixed maturity securities $ 519,239 $ 5,831 $ 265,776 $ 8,834 $ 947,335 $ 27,973 $ 52,129 $ 6,922 Total number of securities in an unrealized loss position 131 58 203 35 Evaluation of AFS Securities for OTTI and Evaluating Temporarily Impaired AFS Securities Evaluation and Measurement Methodologies Management considers a wide range of factors about the security issuer and uses its best judgment in evaluating the cause of the decline in the estimated fair value of the security and in assessing the prospects for near-term recovery. Inherent in management’s evaluation of the security are assumptions and estimates about the operations of the issuer and its future earnings potential. Considerations used in the impairment evaluation process include, but are not limited to: (i) the length of time and the extent to which the estimated fair value has been below amortized cost; (ii) the potential for impairments when the issuer is experiencing significant financial difficulties; (iii) the potential for impairments in an entire industry sector or sub-sector; (iv) the potential for impairments in certain economically depressed geographic locations; (v) the potential for impairments where the issuer, series of issuers or industry has suffered a catastrophic loss or has exhausted natural resources; (vi) whether the Company has the intent to sell or will more likely than not be required to sell a particular security before the decline in estimated fair value below amortized cost recovers; (vii) with respect to Structured Securities, changes in forecasted cash flows after considering the quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying assets backing a particular security, and the payment priority within the tranche structure of the security; (viii) the potential for impairments due to weakening of foreign currencies on non-functional currency denominated fixed maturity securities that are near maturity; and (ix) other subjective factors, including concentrations and information obtained from regulators and rating agencies. Current Period Evaluation Based on the Company’s current evaluation of its AFS securities in an unrealized loss position in accordance with its impairment policy, and the Company’s current intentions and assessments (as applicable to the type of security) about holding, selling and any requirements to sell these securities, the Company concluded that these securities were not other-than-temporarily impaired at December 31, 2017 . Gross unrealized losses on fixed maturity securities decreased $20.2 million during the year ended December 31, 2017 to $14.7 million . The decrease in gross unrealized losses for the year ended December 31, 2017 , was primarily attributable to narrowing credit spreads and decreasing longer-term interest rates. At December 31, 2017 , there were no gross unrealized losses on fixed maturity securities with an unrealized loss position of 20% or more of amortized cost for six months or greater. Mortgage Loans Mortgage Loans by Portfolio Segment Mortgage loans are summarized as follows at: December 31, 2017 2016 Carrying % of Carrying % of (Dollars in thousands) Mortgage loans: Commercial $ 276,626 70.0 % $ 286,002 70.4 % Agricultural 119,984 30.4 121,858 30.0 Subtotal (1) 396,610 100.4 407,860 100.4 Valuation allowances (2) (1,747 ) (0.4 ) (1,775 ) (0.4 ) Total mortgage loans, net $ 394,863 100.0 % $ 406,085 100.0 % __________________ (1) The Company purchases unaffiliated mortgage loans under a master participation agreement from a former affiliate, simultaneously with the former affiliate’s origination or acquisition of mortgage loans. The aggregate amount of unaffiliated mortgage loan participation interests purchased by the Company from the former affiliate during the years ended December 31, 2017 , 2016 and 2015 were $22.2 million , $100.2 million and $44.9 million , respectively. In connection with the mortgage loan participations, the former affiliate collected mortgage loan principal and interest payments on the Company’s behalf and the former affiliate remitted such payments to the Company in the amount of $58.5 million , $63.7 million and $30.3 million during the years ended December 31, 2017 , 2016 and 2015 , respectively. (2) The valuation allowances were primarily from collective evaluation (non-specific loan related). Information on commercial and agricultural mortgage loans is presented in the tables below. Valuation Allowance Methodology Mortgage loans are considered to be impaired when it is probable that, based upon current information and events, the Company will be unable to collect all amounts due under the loan agreement. Specific valuation allowances are established using the same methodology for both portfolio segments as the excess carrying value of a loan over either (i) the present value of expected future cash flows discounted at the loan’s original effective interest rate, (ii) the estimated fair value of the loan’s underlying collateral if the loan is in the process of foreclosure or otherwise collateral dependent, or (iii) the loan’s observable market price. A common evaluation framework is used for establishing non-specific valuation allowances for both loan portfolio segments; however, a separate non-specific valuation allowance is calculated and maintained for each loan portfolio segment that is based on inputs unique to each loan portfolio segment. Non-specific valuation allowances are established for pools of loans with similar risk characteristics where a property-specific or market-specific risk has not been identified, but for which the Company expects to incur a credit loss. These evaluations are based upon several loan portfolio segment-specific factors, including the Company’s experience for loan losses, defaults and loss severity, and loss expectations for loans with similar risk characteristics. These evaluations are revised as conditions change and new information becomes available. Credit Quality of Commercial Mortgage Loans The credit quality of commercial mortgage loans was as follows at: Recorded Investment Debt Service Coverage Ratios Total % of > 1.20x 1.00x - 1.20x < 1.00x (Dollars in thousands) December 31, 2017 Loan-to-value ratios: Less than 65% $ 243,217 $ 17,425 $ — $ 260,642 94.2 % 65% to 75% 12,957 — — 12,957 4.7 76% to 80% 3,027 — — 3,027 1.1 Total $ 259,201 $ 17,425 $ — $ 276,626 100.0 % December 31, 2016 Loan-to-value ratios: Less than 65% $ 259,711 $ 15,614 $ 999 $ 276,324 96.6 % 65% to 75% 9,678 — — 9,678 3.4 Total $ 269,389 $ 15,614 $ 999 $ 286,002 100.0 % Credit Quality of Agricultural Mortgage Loans The credit quality of agricultural mortgage loans was as follows at: December 31, 2017 2016 Recorded % of Recorded % of (Dollars in thousands) Loan-to-value ratios: Less than 65% $ 119,077 99.2 % $ 119,974 98.4 % 65% to 75% 907 0.8 1,884 1.6 Total $ 119,984 100.0 % $ 121,858 100.0 % Past Due, Nonaccrual and Modified Mortgage Loans The Company has a high quality, well performing mortgage loan portfolio, with all mortgage loans classified as performing at both December 31, 2017 and 2016 . The Company defines delinquency consistent with industry practice, when mortgage loans are past due as follows: commercial mortgage loans – 60 days and agricultural mortgage loans – 90 days. The Company had no commercial or agricultural mortgage loans past due and no commercial or agricultural mortgage loans in nonaccrual status at both December 31, 2017 and 2016 . During the years ended December 31, 2017 and 2016 , the Company did not have any mortgage loans modified in a troubled debt restructuring. Cash Equivalents The carrying value of cash equivalents, which includes securities and other investments with an original or remaining maturity of three months or less at the time of purchase, was $60.7 million and $9.2 million at December 31, 2017 and 2016 , respectively. Net Unrealized Investment Gains (Losses) Unrealized investment gains (losses) on fixed maturity securities AFS and the effect on DAC, DSI and future policy benefits, that would result from the realization of the unrealized gains (losses), are included in net unrealized investment gains (losses) in AOCI. The components of net unrealized investment gains (losses), included in AOCI, were as follows: Years Ended December 31, 2017 2016 2015 (In thousands) Fixed maturity securities $ 56,432 $ 7,862 $ 6,028 Derivatives 471 4,718 3,189 Subtotal 56,903 12,580 9,217 Amounts allocated from: DAC and DSI (19,400 ) (5,800 ) (900 ) Deferred income tax benefit (expense) (7,875 ) (2,373 ) (2,911 ) Net unrealized investment gains (losses) $ 29,628 $ 4,407 $ 5,406 The changes in net unrealized investment gains (losses) were as follows: Years Ended December 31, 2017 2016 2015 (In thousands) Balance at January 1, $ 4,407 $ 5,406 $ 39,591 Unrealized investment gains (losses) during the year 44,323 3,363 (55,293 ) Unrealized investment gains (losses) relating to: DAC and DSI (13,600 ) (4,900 ) 2,700 Deferred income tax benefit (expense) (5,502 ) 538 18,408 Balance at December 31, $ 29,628 $ 4,407 $ 5,406 Change in net unrealized investment gains (losses) $ 25,221 $ (999 ) $ (34,185 ) Concentrations of Credit Risk There were no investments in any counterparty that were greater than 10% of the Company’s equity, other than the U.S. government and its agencies, at both December 31, 2017 and 2016 . Invested Assets on Deposit and Pledged as Collateral Invested assets on deposit and pledged as collateral are presented below at estimated fair value at: December 31, 2017 2016 (In thousands) Invested assets on deposit (regulatory deposits) $ 1,549 $ 1,507 Invested assets pledged as collateral (1) $ 707 $ — Total invested assets on deposit and pledged as collateral $ 2,256 $ 1,507 __________________ (1) The Company has pledged invested assets in connection with derivative transactions (see Note 7 ). Variable Interest Entities The Company has invested in certain entities that are VIEs. In certain instances, the Company may hold both the power to direct the most significant activities of the entity, as well as an economic interest in the entity and, as such, it would be deemed the primary beneficiary or consolidator of the entity. The determination of the VIE’s primary beneficiary requires an evaluation of the contractual and implied rights and obligations associated with each party’s relationship with or involvement in the entity, an estimate of the entity’s expected losses and expected residual returns and the allocation of such estimates to each party involved in the entity. Consolidated VIEs There were no VIEs for which the Company has concluded that it is the primary beneficiary and which are consolidated at either December 31, 2017 or 2016 . Unconsolidated VIEs The carrying amount and maximum exposure to loss relating to VIEs in which the Company holds a significant variable interest but is not the primary beneficiary and which have not been consolidated were as follows at: December 31, 2017 2016 Carrying Maximum Carrying Maximum (In thousands) Fixed maturity securities AFS: Structured Securities (2) $ 431,406 $ 431,406 $ 444,013 $ 444,013 Foreign corporate 6,394 6,394 5,884 5,884 Total $ 437,800 $ 437,800 $ 449,897 $ 449,897 _____________ (1) The maximum exposure to loss relating to fixed maturity securities AFS is equal to their carrying amounts or the carrying amounts of retained interests. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee. (2) For these variable interests, the Company’s involvement is limited to that of a passive investor in mortgage-backed or asset-backed securities issued by trusts that do not have substantial equity. Net Investment Income The components of net investment income were as follows: Years Ended December 31, 2017 2016 2015 (In thousands) Investment income: Fixed maturity securities $ 71,779 $ 50,386 $ 47,069 Mortgage loans 16,665 8,734 6,904 Cash, cash equivalents and short-term investments 261 102 38 Other 778 516 401 Subtotal 89,483 59,738 54,412 Less: Investment expenses 3,156 1,958 1,468 Net investment income $ 86,327 $ 57,780 $ 52,944 See “— Related Party Investment Transactions” for discussion of affiliated investment expenses. Net Investment Gains (Losses) Components of Net Investment Gains (Losses) The components of net investment gains (losses) were as follows: Years Ended December 31, 2017 2016 2015 (In thousands) Total gains (losses) on fixed maturity securities: Total OTTI losses recognized: U.S. and foreign corporate securities — by industry: Industrial $ — $ (870 ) $ — OTTI losses on fixed maturity securities recognized in earnings — (870 ) — Fixed maturity securities — net gains (losses) on sales and disposals (1,749 ) (1,884 ) 4,547 Total gains (losses) on fixed maturity securities (1,749 ) (2,754 ) 4,547 Equity securities - net gains (losses) on sales and disposals — 6 — Mortgage loans (42 ) (1,129 ) (146 ) Other 613 140 (2 ) Total net investment gains (losses) $ (1,178 ) $ (3,737 ) $ 4,399 Gains (losses) from foreign currency transactions included within net investment gains (losses) were $467 thousand , ($54) thousand and $458 thousand for the years ended December 31, 2017 , 2016 and 2015 , respectively. Sales or Disposals and Impairments of Fixed Maturity Securities Investment gains and losses on sales of securities are determined on a specific identification basis. Proceeds from sales or disposals of fixed maturity securities and the components of fixed maturity securities net investment gains (losses) were as shown in the table below. Years Ended December 31, 2017 2016 2015 2017 2016 2015 Fixed Maturity Securities Equity Securities (In thousands) Proceeds $ 462,993 $ 74,657 $ 292,993 $ — $ 183 $ — Gross investment gains $ 1,879 $ 1,006 $ 8,204 $ — $ 6 $ — Gross investment losses (3,628 ) (2,890 ) (3,657 ) — — — OTTI losses — (870 ) — — — — Net investment gains (losses) $ (1,749 ) $ (2,754 ) $ 4,547 $ — $ 6 $ — Related Party Investment Transaction s During the year ended December 31, 2016 , the Company transferred invested assets to affiliates with an estimated fair value of $1.5 million and amortized cost of $1.4 million . Net investment gains (losses) recognized on these transfers was $64 thousand . In November 2016, the Company received a transfer of investments and cash and cash equivalents totaling $933.4 million for the recapture of risks related to certain single premium deferred annuity contracts previously reinsured to MLIC, a former affiliate. See Note 5 for additional information related to this transfer. The Company receives investment administrative services from MetLife Investment Advisors, LLC (“MLIA”), a related party investment advisor. The related investment administrative service charges were $2.8 million , $1.9 million and $1.4 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 7. Derivatives Accounting for Derivatives See Note 1 for a description of the Company’s accounting policies for derivatives and Note 8 for information about the fair value hierarchy for derivatives. Derivatives are financial instruments with values derived from interest rates, foreign currency exchange rates, credit spreads and/or other financial indices. Derivatives may be exchange-traded or contracted in the over-the-counter (“OTC”) market. Certain of the Company’s OTC derivatives are bilateral contracts between two counterparties (“OTC-bilateral”). The Company primarily uses foreign currency swaps. Foreign Currency Exchange Rate Derivatives The Company uses foreign currency swaps to reduce the risk from fluctuations in foreign currency exchange rates associated with its assets denominated in foreign currencies. In a foreign currency swap transaction, the Company agrees with another party to exchange, at specified intervals, the difference between one currency and another at a fixed exchange rate, generally set at inception, calculated by reference to an agreed upon notional amount. The notional amount of each currency is exchanged at the inception and termination of the currency swap by each party. The Company utilizes foreign currency swaps in cash flow and nonqualifying hedging relationships. Primary Risks Managed by Derivatives The following table presents the primary underlying risk exposure, gross notional amount, and estimated fair value of the Company’s derivatives, excluding embedded derivatives, held at: Primary Underlying Risk Exposure December 31, 2017 2016 Estimated Fair Value Estimated Fair Value Gross Assets Liabilities Gross Assets Liabilities (In thousands) Derivatives Designated as Hedging Instruments Cash flow hedges: Foreign currency swaps Foreign currency exchange rate $ 70,307 $ 1,571 $ 1,357 $ 33,930 $ 4,947 $ — Derivatives Not Designated or Not Qualifying as Hedging Instruments Foreign currency swaps Foreign currency exchange rate 16,636 2,213 254 14,063 3,709 — Total $ 86,943 $ 3,784 $ 1,611 $ 47,993 $ 8,656 $ — The Company recognized net investment income from settlement payments related to qualifying hedges of $604 thousand , $581 thousand and $394 thousand for the years ended December 31, 2017 , 2016 and 2015 , respectively. The Company recognized net derivative gains (losses) from settlement payments related to non-qualifying hedges of $326 thousand , $279 thousand and $215 thousand for the years ended December 31, 2017 , 2016 and 2015 , respectively. The following tables present the amount and location of gains (losses) recognized for derivatives and gains (losses) pertaining to hedged items presented in net derivative gains (losses): Year Ended December 31, 2017 Net Derivative Gains (Losses) Recognized for Derivatives (1) Net Derivatives Gains (Losses) Recognized for Hedged Items (2) Amount of Gains (Losses) deferred in AOCI (In thousands) Derivatives Designated as Hedging Instruments: Cash flow hedges (3): Foreign currency exchange rate derivatives $ (9 ) $ — $ (4,257 ) Total cash flow hedges (9 ) — (4,257 ) Derivatives Not Designated or Not Qualifying as Hedging Instruments: Foreign currency exchange rate derivatives (1,609 ) 373 — Embedded derivatives (156,297 ) — — Total non-qualifying hedges (157,906 ) 373 — Total $ (157,915 ) $ 373 $ (4,257 ) Year Ended December 31, 2016 Net Derivative Gains (Losses) Recognized for Derivatives (1) Net Derivatives Gains (Losses) Recognized for Hedged Items (2) Amount of Gains (Losses) deferred in AOCI (In thousands) Derivatives Designated as Hedging Instruments: Cash flow hedges (3): Foreign currency exchange rate derivatives $ 55 $ (44 ) $ 1,584 Total cash flow hedges 55 (44 ) 1,584 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Foreign currency exchange rate derivatives 2,114 (757 ) — Embedded derivatives 66,079 — — Total non-qualifying hedges 68,193 (757 ) — Total $ 68,248 $ (801 ) $ 1,584 Year Ended December 31, 2015 Net Derivative Gains (Losses) Recognized for Derivatives (1) Net Derivatives Gains (Losses) Recognized for Hedged Items (2) Amount of Gains (Losses) deferred in AOCI (In thousands) Derivatives Designated as Hedging Instruments: Cash flow hedges (3): Foreign currency exchange rate derivatives $ — $ (32 ) $ 2,760 Total cash flow hedges — (32 ) 2,760 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Foreign currency exchange rate derivatives 1,557 (456 ) — Embedded derivatives 63,716 — — Total non-qualifying hedges 65,273 (456 ) — Total $ 65,273 $ (488 ) $ 2,760 ______________ (1) Includes gains (losses) reclassified from AOCI for cash flow hedges. Ineffective portion of the gains (losses) recognized in income is not significant . (2) Includes foreign currency transaction gains (losses) on hedged items in cash flow and nonqualifying hedging relationships. (3) All components of each derivative's gain or loss were included in the assessment of hedge effectiveness. In certain instances, the Company discontinued cash flow hedge accounting because the forecasted transactions were no longer probable of occurring. Because certain of the forecasted transactions also were not probable of occurring within two months of the anticipated date, the Company reclassified amounts from AOCI into net derivative gains (losses). For the year ended December 31, 2017 , there were no amounts reclassified into net derivative gains (losses) related to such discontinued cash flow hedges. For the year ended December 31, 2016 , $49 thousand was reclassified into net derivative gains (losses) related to such discontinued cash flow hedges. For the year ended December 31, 2015 , there were no amounts reclassified into net derivative gains (losses) related to such discontinued cash flow hedges. There were no hedged forecasted transactions, other than the receipt or payment of variable interest payments, for both the years ended December 31, 2017 and 2016 . At December 31, 2017 and 2016 , the balance in AOCI associated with foreign currency swaps designated and qualifying as cash flow hedges was $471 thousand and $4.7 million , respectively. Credit Risk The Company may be exposed to credit-related losses in the event of nonperformance by its counterparties to derivatives. Generally, the current credit exposure of the Company’s derivatives is limited to the net positive estimated fair value of derivatives at the reporting date after taking into consideration the existence of master netting or similar agreements and any collateral received pursuant to such agreements. The Company manages its credit risk related to derivatives by entering into transactions with creditworthy counterparties and establishing and monitoring exposure limits. The Company’s OTC-bilateral derivative transactions are generally governed by International Swaps and Derivatives Association, Inc. (“ISDA”) Master Agreements which provide for legally enforceable set-off and close-out netting of exposures to specific counterparties in the event of early termination of a transaction, which includes, but is not limited to, events of default and bankruptcy. In the event of an early termination, the Company is permitted to set off receivables from the counterparty against payables to the same counterparty arising out of all included transactions. Substantially all of the Company’s ISDA Master Agreements also include Credit Support Annex provisions which require both the pledging and accepting of collateral in connection with its OTC-bilateral derivatives. See Note 8 for a description of the impact of credit risk on the valuation of derivatives. The estimated fair values of the Company’s net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at: December 31, 2017 2016 Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement Assets Liabilities Assets Liabilities (In thousands) Gross estimated fair value of derivatives: OTC-bilateral (1) $ 3,903 $ 1,482 $ 8,850 $ — Total gross estimated fair value of derivatives (1) 3,903 1,482 8,850 — Amounts offset on the balance sheets — — — — Estimated fair value of derivatives presented on the balance sheets (1) 3,903 1,482 8,850 — Gross amounts not offset on the balance sheets: Gross estimated fair value of derivatives: (2) OTC-bilateral (1,482 ) (1,482 ) — — Cash collateral: (3) OTC-bilateral (2,367 ) — (8,672 ) — Securities collateral: (4) OTC-bilateral — — — — Net amount after application of master netting agreements and collateral $ 54 $ — $ 178 $ — ______________ (1) At December 31, 2017 and 2016 , derivative assets included income or (expense) accruals reported in accrued investment income or in other liabilities of $119 thousand and $194 thousand , respectively and derivative liabilities included (income) or expense accruals reported in accrued investment income or in other liabilities of ($129) thousand and $0 , respectively. (2) Estimated fair value of derivatives is limited to the amount that is subject to set-off and includes income or expense accruals. (3) Cash collateral received is included in cash and cash equivalents or in short-term investments, and the obligation to return it is included in payables for collateral transactions on the balance sheet. The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements. At December 31, 2017 and 2016 , the Company received excess cash collateral of $3.0 million and $270 thousand , respectively, and did not provide any excess cash collateral, which is not included in the table above due to the foregoing limitation. (4) Securities collateral received by the Company is held in separate custodial accounts and is not recorded on the balance sheet. Subject to certain constraints, the Company is permitted by contract to sell or re-pledge this collateral, but at December 31, 2017 , none of the collateral had been sold or re-pledged. Securities collateral pledged by the Company is reported in fixed maturity securities on the balance sheet. Subject to certain constraints, the counterparties are permitted by contract to sell or re-pledge this collateral. The amount of securities collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements and cash collateral. At December 31, 2017 and 2016 , the Company did not receive excess securities collateral, and provided excess securities collateral with an estimated fair value of $707 thousand and $0 , respectively, for its OTC-bilateral derivatives. The Company’s collateral arrangements for its OTC-bilateral derivatives generally require the counterparty in a net liability position, after considering the effect of netting agreements, to pledge collateral when the collateral amount owed by that counterparty reaches a minimum transfer amount. In addition, the Company’s netting agreements for derivatives contain provisions that require both the Company and the counterparty to maintain a specific investment grade credit rating from each of Moody’s and S&P. If a party’s credit or financial strength ratings, as applicable, were to fall below that specific investment grade credit rating, that party would be in violation of these provisions, and the other party to the derivatives could terminate the transactions and demand immediate settlement and payment based on such party’s reasonable valuation of the derivatives. At both December 31, 2017 and 2016 , the Company held no OTC-bilateral derivatives that were in a net liability position after considering the effect of netting agreements. The Company’s collateral arrangements require both parties to be fully collateralized, as such, the Company would not be required to post additional collateral as a result of a downgrade in its financial strength rating. Embedded Derivatives The Company issues certain products that contain embedded derivatives that are required to be separated from their host contracts and accounted for as freestanding derivatives. These host contracts principally include: variable annuities with guaranteed minimum benefits, including GMWBs, GMABs and certain GMIBs; related party ceded reinsurance of guaranteed minimum benefits related to GMWBs, GMABs and certain GMIBs ; and fixed annuities with equity-indexed returns. The following table presents the estimated fair value and balance sheet location of the Company’s embedded derivatives that have been separated from their host contracts at : December 31, Balance Sheet Location 2017 2016 (In thousands) Embedded derivatives within asset host contracts: Ceded guaranteed minimum benefits Premiums, reinsurance and other receivables $ 307,698 $ 379,297 Embedded derivatives within liability host contracts: Direct guaranteed minimum benefits Policyholder account balances $ (51,130 ) $ (23,740 ) Fixed annuities with equity indexed returns Policyholder account balances 11,195 — Embedded derivatives within liability host contracts $ (39,935 ) $ (23,740 ) The following table presents changes in estimated fair value related to embedded derivatives: Years Ended December 31, 2017 2016 2015 (In thousands) Net derivative gains (losses) (1), (2) $ (156,297 ) $ 66,079 $ 63,716 ______________ (1) The valuation of direct guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses) in connection with this adjustment were $466 thousand , ($57) thousand and $1.4 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. In addition, the valuation of ceded guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses) in connection with this adjustment were ($24.7) million , ($19.0) million and ($2.6) million for the years ended December 31, 2017 , 2016 and 2015 , respectively. (2) See Note 5 for discussion of related party net derivative gains (losses). |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 8. Fair Value When developing estimated fair values, the Company considers three broad valuation techniques: (i) the market approach, (ii) the income approach, and (iii) the cost approach. The Company determines the most appropriate valuation technique to use, given what is being measured and the availability of sufficient inputs, giving priority to observable inputs. The Company categorizes its assets and liabilities measured at estimated fair value into a three-level hierarchy, based on the significant input with the lowest level in its valuation. The input levels are as follows: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities. The size of the bid/ask spread is used as an indicator of market activity for fixed maturity securities. Level 2 Quoted prices in markets that are not active or inputs that are observable either directly or indirectly. These inputs can include quoted prices for similar assets or liabilities other than quoted prices in Level 1, quoted prices in markets that are not active, or other significant inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and are significant to the determination of estimated fair value of the assets or liabilities. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability. Recurring Fair Value Measurements The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy, including those items for which the Company has elected the FVO, are presented below at: December 31, 2017 Fair Value Hierarchy Level 1 Level 2 Level 3 Total Estimated (In thousands) Assets Fixed maturity securities: U.S. corporate $ — $ 750,891 $ 46,733 $ 797,624 U.S. government and agency 420,084 126,979 — 547,063 Foreign corporate — 259,897 49,217 309,114 RMBS — 207,338 14,442 221,780 CMBS — 195,306 5,115 200,421 State and political subdivision — 70,286 — 70,286 ABS — 58,872 — 58,872 Foreign government — 16,403 — 16,403 Total fixed maturity securities 420,084 1,685,972 115,507 2,221,563 Derivative assets: (1) Foreign currency exchange rate — 3,784 — 3,784 Embedded derivatives within asset host contracts (2) — — 307,698 307,698 Separate account assets — 5,021,633 — 5,021,633 Total assets $ 420,084 $ 6,711,389 $ 423,205 $ 7,554,678 Liabilities Derivative liabilities: (1) Foreign currency exchange rate $ — $ 1,611 $ — $ 1,611 Embedded derivatives within liability host contracts (2) — — (39,935 ) (39,935 ) Total liabilities $ — $ 1,611 $ (39,935 ) $ (38,324 ) December 31, 2016 Fair Value Hierarchy Level 1 Level 2 Level 3 Total Estimated (In thousands) Assets Fixed maturity securities: U.S. corporate $ — $ 681,406 $ 40,405 $ 721,811 U.S. government and agency 289,186 117,359 — 406,545 Foreign corporate — 200,454 31,886 232,340 RMBS — 217,091 21,296 238,387 CMBS — 173,763 5,193 178,956 State and political subdivision — 56,320 — 56,320 ABS — 21,736 4,934 26,670 Foreign government — 17,485 — 17,485 Total fixed maturity securities 289,186 1,485,614 103,714 1,878,514 Derivative assets: (1) Foreign currency exchange rate — 8,656 — 8,656 Embedded derivatives within asset host contracts (2) — — 379,297 379,297 Separate account assets — 4,758,449 — 4,758,449 Total assets $ 289,186 $ 6,252,719 $ 483,011 $ 7,024,916 Liabilities Derivative liabilities: (1) Foreign currency exchange rate $ — $ — $ — $ — Embedded derivatives within liability host contracts (2) — — (23,740 ) (23,740 ) Total liabilities $ — $ — $ (23,740 ) $ (23,740 ) ______________ (1) Derivative assets are presented within other invested assets on the balance sheets and derivative liabilities are presented within other liabilities on the balance sheets. The amounts are presented gross in the tables above to reflect the presentation on the balance sheets. (2) Embedded derivatives within asset host contracts are presented within premiums, reinsurance and other receivables on the balance sheets. Embedded derivatives within liability host contracts are presented within policyholder account balances on the balance sheets. Valuation Controls and Procedures The Company monitors and provides oversight of valuation controls and policies for securities, mortgage loans and derivatives, which are primarily executed by MLIA. The valuation methodologies used to determine fair values prioritize the use of observable market prices and market-based parameters and determines that judgmental valuation adjustments, when applied, are based upon established policies and are applied consistently over time. The valuation methodologies for securities, mortgage loans and derivatives are reviewed on an ongoing basis and revised when necessary, based on changing market conditions. In addition, the Chief Accounting Officer periodically reports to the Audit Committee of Brighthouse’s Board of Directors regarding compliance with fair value accounting standards. The fair value of financial assets and financial liabilities is based on quoted market prices, where available. The Company assesses whether prices received represent a reasonable estimate of fair value through controls designed to ensure valuations represent an exit price. MLIA performs several controls, including certain monthly controls, which include, but are not limited to, analysis of portfolio returns to corresponding benchmark returns, comparing a sample of executed prices of securities sold to the fair value estimates, reviewing the bid/ask spreads to assess activity, comparing prices from multiple independent pricing services and ongoing due diligence to confirm that independent pricing services use market-based parameters. The process includes a determination of the observability of inputs used in estimated fair values received from independent pricing services or brokers by assessing whether these inputs can be corroborated by observable market data. Independent non-binding broker quotes, also referred to herein as “consensus pricing”, are used for non-significant portion of the portfolio. Prices received from independent brokers are assessed to determine if they represent a reasonable estimate of fair value by considering such pricing relative to the current market dynamics and current pricing for similar financial instruments. Fixed maturity securities priced using independent non-binding broker quotations represent less than 1% of the total estimated fair value of fixed maturity securities and 4% of the total estimated fair value of Level 3 fixed maturity securities at December 31, 2017. MLIA also applies a formal process to challenge any prices received from independent pricing services that are not considered representative of estimated fair value. If prices received from independent pricing services are not considered reflective of market activity or representative of estimated fair value, independent non-binding broker quotations are obtained. If obtaining an independent non-binding broker quotation is unsuccessful, MLIA will use the last available price. The Company reviews outputs of MLIA’s controls and performs additional controls, including certain monthly controls, which include but are not limited to, performing balance sheet analytics to assess reasonableness of period to period pricing changes, including any price adjustments. Price adjustments are applied if prices or quotes received from independent pricing services or brokers are not considered reflective of market activity or representative of estimated fair value. The Company did not have significant price adjustments during the year ended December 31, 2017. Determination of Fair Value Fixed maturities The fair values for actively traded marketable bonds, primarily U.S. government and agency securities, are determined using the quoted market prices and are classified as Level 1 assets. For fixed maturities classified as Level 2 assets, fair values are determined using either a market or income approach and are valued based on a variety of observable inputs as described below. U.S. corporate and foreign corporate securities: Fair value is determined using third-party commercial pricing services, with the primary inputs being quoted prices in markets that are not active, benchmark yields, spreads off benchmark yields, new issuances, issuer rating, trades of identical or comparable securities, or duration. Privately-placed securities are valued using the additional key inputs: market yield curve, call provisions, observable prices and spreads for similar public or private securities that incorporate the credit quality and industry sector of the issuer, and delta spread adjustments to reflect specific credit-related issues. U.S. government and agency, state and political subdivision and foreign government securities: Fair value is determined using third-party commercial pricing services, with the primary inputs being quoted prices in markets that are not active, benchmark U.S. Treasury yield or other yields, spread off the U.S. Treasury yield curve for the identical security, issuer ratings and issuer spreads, broker dealer quotes, and comparable securities that are actively traded. Structured securities: Fair value is determined using third-party commercial pricing services, with the primary inputs being quoted prices in markets that are not active, spreads for actively traded securities, spreads off benchmark yields, expected prepayment speeds and volumes, current and forecasted loss severity, ratings, geographic region, weighted average coupon and weighted average maturity, average delinquency rates and debt-service coverage ratios. Other issuance-specific information is also used, including, but not limited to; collateral type, structure of the security, vintage of the loans, payment terms of the underlying asset, payment priority within tranche, and deal performance. Derivatives The fair values for OTC-bilateral derivatives and OTC-cleared derivatives classified as Level 2 assets or liabilities, fair values are determined using the income approach. Valuations of non-option-based derivatives utilize present value techniques, whereas valuations of option-based derivatives utilize option pricing models pricing models which are based on market standard valuation methodologies and a variety of observable inputs. The significant inputs to the pricing models for most OTC-bilateral derivatives are inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. Certain OTC-bilateral derivatives may rely on inputs that are significant to the estimated fair value that are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. These unobservable inputs may involve significant management judgment or estimation. Even though unobservable, these inputs are based on assumptions deemed appropriate given the circumstances and management believes they are consistent with what other market participants would use when pricing such instruments. Most inputs for OTC-bilateral derivatives are mid-market inputs but, in certain cases, liquidity adjustments are made when they are deemed more representative of exit value. Market liquidity, as well as the use of different methodologies, assumptions and inputs, may have a material effect on the estimated fair values of the Company’s derivatives and could materially affect net income. The credit risk of both the counterparty and the Company are considered in determining the estimated fair value for all OTC-bilateral derivatives, and any potential credit adjustment is based on the net exposure by counterparty after taking into account the effects of netting agreements and collateral arrangements. The Company values its OTC-bilateral derivatives using standard swap curves which may include a spread to the risk-free rate, depending upon specific collateral arrangements. This credit spread is appropriate for those parties that execute trades at pricing levels consistent with similar collateral arrangements. As the Company and its significant derivative counterparties generally execute trades at such pricing levels and hold sufficient collateral, additional credit risk adjustments are not currently required in the valuation process. The Company’s ability to consistently execute at such pricing levels is in part due to the netting agreements and collateral arrangements that are in place with all of its significant derivative counterparties. An evaluation of the requirement to make additional credit risk adjustments is performed by the Company each reporting period. Embedded Derivatives Embedded derivatives principally include certain direct variable annuity guarantees and certain affiliated ceded reinsurance agreements related to such variable annuity guarantees. Embedded derivatives are recorded at estimated fair value with changes in estimated fair value reported in net income. The Company issues certain variable annuity products with guaranteed minimum benefits. GMWBs, GMABs and certain GMIBs contain embedded derivatives, which are measured at estimated fair value separately from the host variable annuity contract, with changes in estimated fair value reported in net derivative gains (losses). These embedded derivatives are classified within policyholder account balances on the balance sheets. The Company’s actuarial department calculates the fair value of these embedded derivatives, which are estimated as the present value of projected future benefits minus the present value of projected future fees using actuarial and capital market assumptions including expectations concerning policyholder behavior. The calculation is based on in-force business, and is performed using standard actuarial valuation software which projects future cash flows from the embedded derivative over multiple risk neutral stochastic scenarios using observable risk-free rates. Capital market assumptions, such as risk-free rates and implied volatilities, are based on market prices for publicly traded instruments to the extent that prices for such instruments are observable. Implied volatilities beyond the observable period are extrapolated based on observable implied volatilities and historical volatilities. Actuarial assumptions, including mortality, lapse, withdrawal and utilization, are unobservable and are reviewed at least annually based on actuarial studies of historical experience. The valuation of these guarantee liabilities includes nonperformance risk adjustments and adjustments for a risk margin related to non-capital market inputs. The nonperformance adjustment is determined by taking into consideration publicly available information relating to spreads in the secondary market for Brighthouse Financial, Inc.’s debt. These observable spreads are then adjusted to reflect the priority of these liabilities and claims paying ability of the issuing insurance subsidiaries as compared to Brighthouse Financial, Inc.’s overall financial strength. Risk margins are established to capture the non-capital market risks of the instrument which represent the additional compensation a market participant would require to assume the risks related to the uncertainties of such actuarial assumptions as annuitization, premium persistency, partial withdrawal and surrenders. The establishment of risk margins requires the use of significant management judgment, including assumptions of the amount and cost of capital needed to cover the guarantees. These guarantees may be more costly than expected in volatile or declining equity markets. Market conditions including, but not limited to, changes in interest rates, equity indices, market volatility and foreign currency exchange rates; changes in nonperformance risk; and variations in actuarial assumptions regarding policyholder behavior, mortality and risk margins related to non-capital market inputs, may result in significant fluctuations in the estimated fair value of the guarantees that could materially affect net income. The Company ceded to a former affiliate the risk associated with certain of the GMIBs, GMABs and GMWBs described above. These reinsurance agreements contain embedded derivatives and are included within premiums, reinsurance and other receivables on the balance sheets with changes in estimated fair value reported in net derivative gains (losses). The value of the embedded derivatives on the ceded risk is determined using a methodology consistent with that described previously for the guarantees directly written by the Company with the exception of the input for nonperformance risk that reflects the credit of the reinsurer. Transfers between Levels Overall, transfers between levels occur when there are changes in the observability of inputs and market activity. Transfers into or out of any level are assumed to occur at the beginning of the period. Transfers between Levels 1 and 2: There were no transfers between Levels 1 and 2 for assets and liabilities measured at estimated fair value and still held at both December 31, 2017 and 2016. Transfers into or out of Level 3: Assets and liabilities are transferred into Level 3 when a significant input cannot be corroborated with market observable data. This occurs when market activity decreases significantly and underlying inputs cannot be observed, current prices are not available, and/or when there are significant variances in quoted prices, thereby affecting transparency. Assets and liabilities are transferred out of Level 3 when circumstances change such that a significant input can be corroborated with market observable data. This may be due to a significant increase in market activity, a specific event, or one or more significant input(s) becoming observable. Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) The following table presents certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at: December 31, 2017 December 31, 2016 Impact of Valuation Techniques Significant Range Weighted Range Weighted Fixed maturity securities (3) U.S. corporate and foreign corporate • Matrix pricing • Offered quotes (4) 98 - 142 108 94 - 136 107 Increase • Market pricing • Quoted prices (4) 87 - 109 99 75 - 110 97 Increase RMBS • Market pricing • Quoted prices (4) 70 - 101 85 56 - 111 86 Increase (5) CMBS • Market pricing • Quoted prices (4) 104 - 104 104 Increase (5) Embedded derivatives Direct, assumed and ceded guaranteed minimum benefits • Option pricing • Mortality rates: Ages 0 - 40 0% - 0.09% 0% - 0.09% Decrease (6) Ages 41 - 60 0.04% - 0.65% 0.04% - 0.65% Decrease (6) Ages 61 - 115 0.26% - 100% 0.26% - 100% Decrease (6) • Lapse rates: Durations 1 - 10 0.25% - 100% 0.25% - 100% Decrease (7) Durations 11 - 20 2% - 100% 2% - 100% Decrease (7) Durations 21 - 116 2% - 100% 2% - 100% Decrease (7) • Utilization rates 0% - 25% 0% - 25% Increase (8) • Withdrawal rates 0.25% - 10% 0.25% - 10% (9) • Long-term equity volatilities 17.40% - 25% 17.40% - 25% Increase (10) • Nonperformance risk spread 0.64% - 1.43% 0.04% - 0.57% Decrease (11) ______________ (1) The weighted average for fixed maturity securities is determined based on the estimated fair value of the securities. (2) The impact of a decrease in input would have the opposite impact on estimated fair value. For embedded derivatives, changes to direct and assumed guaranteed minimum benefits are based on liability positions; changes to ceded guaranteed minimum benefits are based on asset positions. (3) Significant increases (decreases) in expected default rates in isolation would result in substantially lower (higher) valuations. (4) Range and weighted average are presented in accordance with the market convention for fixed maturity securities of dollars per hundred dollars of par. (5) Changes in the assumptions used for the probability of default is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumptions used for prepayment rates. (6) Mortality rates vary by age and by demographic characteristics such as gender. Mortality rate assumptions are based on company experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (7) Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in the money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. For any given contract, lapse rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (8) The utilization rate assumption estimates the percentage of contract holders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible. The rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder. For any given contract, utilization rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (9) The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value. (10) Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (11) Nonperformance risk spread varies by duration and by currency. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the embedded derivative. The following is a summary of the valuation techniques and significant unobservable inputs used in the fair value measurement of assets and liabilities classified within Level 3 that are not included in the preceding table. Generally, all other classes of securities classified within Level 3, including those within separate account assets and embedded derivatives, use the same valuation techniques and significant unobservable inputs as previously described for Level 3 securities. This includes matrix pricing and discounted cash flow methodologies, inputs such as quoted prices for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2, as well as independent non-binding broker quotations. The sensitivity of the estimated fair value to changes in the significant unobservable inputs for these other assets and liabilities is similar in nature to that described in the preceding table. The following tables summarize the change of all assets and (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Fixed Maturity Securities Net Embedded Derivatives (2) Corporate (1) Structured Securities (In thousands) Balance, January 1, 2016 $ 55,189 $ 13,862 $ 360,381 Total realized/unrealized gains (losses) included in net income (loss) (3) (4) (64 ) 249 66,079 Total realized/unrealized gains (losses) included in AOCI (1,769 ) 152 — Purchases (5) 21,260 23,916 — Sales (5) (462 ) (1,901 ) — Issuances (5) — — — Settlements (5) — — (23,423 ) Transfers into Level 3 (6) — — — Transfers out of Level 3 (6) (1,863 ) (4,855 ) — Balance, December 31, 2016 72,291 31,423 403,037 Total realized/unrealized gains (losses) included in net income (loss) (3) (4) 3 415 (156,297 ) Total realized/unrealized gains (losses) included in AOCI 5,969 1,051 — Purchases (5) 26,542 — — Sales (5) (2,320 ) (8,398 ) — Issuances (5) — — — Settlements (5) — — 100,893 Transfers into Level 3 (6) — — — Transfers out of Level 3 (6) (6,535 ) (4,934 ) — Balance, December 31, 2017 $ 95,950 $ 19,557 $ 347,633 Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2015 (7) $ 23 $ 83 $ 67,551 Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2016 (7) $ (64 ) $ 249 $ 71,709 Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2017 (7) $ 1 $ 441 $ (141,133 ) Gains (Losses) Data for the year ended December 31, 2015 Total realized/unrealized gains (losses) included in net income (loss) (3) (4) $ 79 $ 83 $ 63,716 Total realized/unrealized gains (losses) included in AOCI $ (1,849 ) $ 55 $ — ______________ (1) Comprised of U.S. and foreign corporate securities. (2) Embedded derivative assets and liabilities are presented net for purposes of the rollforward. (3) Amortization of premium/accretion of discount is included within net investment income. Impairments charged to net income (loss) on securities are included in net investment gains (losses). Lapses associated with net embedded derivatives are included in net derivative gains (losses). Substantially all realized/unrealized gains (losses) included in net income (loss) for net embedded derivatives are reported in net derivatives gains (losses). (4) Interest accruals, as well as cash interest coupons received, are excluded from the rollforward. (5) Items purchased/issued and then sold/settled in the same period are excluded from the rollforward. Fees attributed to embedded derivatives are included in settlements. (6) Gains and losses, in net income (loss) and OCI, are calculated assuming transfers into and/or out of Level 3 occurred at the beginning of the period. Items transferred into and then out of Level 3 in the same period are excluded from the rollforward. (7) Changes in unrealized gains (losses) included in net income (loss) relate to assets and liabilities still held at the end of the respective periods. Substantially all changes in unrealized gains (losses) included in net income (loss) for net embedded derivatives are reported in net derivative gains (losses). Fair Value of Financial Instruments Carried at Other Than Fair Value The following tables provide fair value information for financial instruments that are carried on the balance sheet at amounts other than fair value. These tables exclude the following financial instruments: cash and cash equivalents, accrued investment income and payables for collateral under derivative transactions. The estimated fair value of the excluded financial instruments, which are primarily classified in Level 2, approximates carrying value as they are short-term in nature such that the Company believes there is minimal risk of material changes in interest rates or credit quality. All remaining balance sheet amounts excluded from the tables below are not considered financial instruments subject to this disclosure. The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows at: December 31, 2017 Fair Value Hierarchy Carrying Level 1 Level 2 Level 3 Total (In thousands) Assets Mortgage loans $ 394,863 $ — $ — $ 395,894 $ 395,894 Premiums, reinsurance and other receivables $ 20,489 $ — $ 900 $ 19,728 $ 20,628 Liabilities Policyholder account balances $ 1,154,733 $ — $ — $ 1,140,886 $ 1,140,886 December 31, 2016 Fair Value Hierarchy Carrying Level 1 Level 2 Level 3 Total (In thousands) Assets Mortgage loans $ 406,085 $ — $ — $ 404,079 $ 404,079 Premiums, reinsurance and other receivables $ 30,122 $ — $ 2,095 $ 30,272 $ 32,367 Liabilities Policyholder account balances $ 1,214,186 $ — $ — $ 1,283,338 $ 1,283,338 The methods, assumptions and significant valuation techniques and inputs used to estimate the fair value of financial instruments are summarized as follows: Mortgage Loans The estimated fair value of mortgage loans is primarily determined by estimating expected future cash flows and discounting them using current interest rates for similar mortgage loans with similar credit risk, or is determined from pricing for similar loans. Premiums, Reinsurance and Other Receivables Premiums, reinsurance and other receivables are principally comprised of certain amounts recoverable under reinsurance agreements, which the Company has determined do not transfer significant risk such that they are accounted for using the deposit method of accounting, and have been classified as Level 3. The valuation is based on discounted cash flow methodologies using significant unobservable inputs. The estimated fair value is determined using interest rates determined to reflect the appropriate credit standing of the assuming counterparty. Policyholder Account Balances These policyholder account balances include investment contracts which primarily include fixed deferred annuities, fixed term payout annuities and total control accounts. The valuation of these investment contracts is based on discounted cash flow methodologies using significant unobservable inputs. The estimated fair value is determined using current market risk-free interest rates adding a spread to reflect the nonperformance risk in the liability. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Equity | 9. Equity Capital Transactions In December 2017, the Company received a cash capital contribution of $75.0 million from Brighthouse Life Insurance Company. Statutory Equity and Income The state of domicile of the Company imposes risk-based capital (“RBC”) requirements that were developed by the National Association of Insurance Commissioners (“NAIC”). Regulatory compliance is determined by a ratio of a company’s total adjusted capital, calculated in the manner prescribed by the NAIC (“TAC”) to its authorized control level RBC, calculated in the manner prescribed by the NAIC (“ACL RBC”), based on the statutory-based filed financial statements. Companies below specific trigger levels or ratios are classified by their respective levels, each of which requires specified corrective action. The minimum level of TAC before corrective action commences is twice ACL RBC. The RBC ratio for the Company was in excess of 400% for all periods presented. The Company prepares statutory-basis financial statements in accordance with statutory accounting practices prescribed or permitted by the New York State Department of Financial Services (“NYDFS”). The NAIC has adopted the Codification of Statutory Accounting Principles (“Statutory Codification”). Statutory Codification is intended to standardize regulatory accounting and reporting to state insurance departments. However, statutory accounting principles continue to be established by individual state laws and permitted practices. Modifications by the state insurance department may impact the effect of Statutory Codification on the statutory capital and surplus of the Company. Statutory accounting principles differ from GAAP primarily by charging policy acquisition costs to expense as incurred, establishing future policy benefit liabilities using different actuarial assumptions, reporting of reinsurance agreements and valuing securities on a different basis. In addition, certain assets are not admitted under statutory accounting principles and are charged directly to surplus. The most significant assets not admitted by the Company are net deferred income tax assets resulting from temporary differences between statutory accounting principles basis and tax basis not expected to reverse and become recoverable within three years. New York has adopted certain prescribed accounting practices, primarily consisting of the continuous Commissioners’ Annuity Reserve Valuation Method, which impacts deferred annuities, NYDFS Circular Letter No 11, which impacts deferred premiums, and NYDFS Seventh Amendment to Regulation 172, which impacts admitted unearned reinsurance premiums. The collective impact of these prescribed accounting practices decreased the statutory capital and surplus of the Company for the years ended December 31, 2017 and 2016 by an amo unt of $47.7 million and $53.0 million , respectively, in excess of the amount of the decrease had capital and surplus been measured under NAIC guidance. The tables below present amounts from the Company, which are derived from the statutory-basis financial statements as filed with the NYDFS. Statutory net income (loss) was as follows: Years Ended December 31, Company State of Domicile 2017 2016 2015 (In thousands) Brighthouse Life Insurance Company of NY New York $ 22,166 $ (87,290 ) $ 17,194 Statutory capital and surplus was as follows at: December 31, Company 2017 2016 (In thousands) Brighthouse Life Insurance Company of NY $ 294,298 $ 195,824 Dividend Restrictions The Company is able to pay $21.0 million of dividends in 2018 to its parent without insurance regulatory approval from the NYDFS. The Company did not pay any dividends in 2017 or 2016 to its parent. Effective for dividends paid during 2016 and going forward, the New York Insurance Law was amended permitting the Company, without prior insurance regulatory clearance, to pay stockholder dividends to its parent. in any calendar year based on either of two standards. Under one standard, the Company is permitted, without prior insurance regulatory clearance, to pay dividends out of earned surplus (defined as positive “unassigned funds (surplus)” excluding 85% of the change in net unrealized capital gains or losses (less capital gains tax), for the immediately preceding calendar year), in an amount up to the greater of: (i) 10% of its surplus to policyholders as of the end of the immediately preceding calendar year, or (ii) its statutory net gain from operations for the immediately preceding calendar year (excluding realized capital gains), not to exceed 30% of surplus to policyholders as of the end of the immediately preceding calendar year. In addition, under this standard, the Company may not, without prior insurance regulatory clearance, pay any dividends in any calendar year immediately following a calendar year for which its net gain from operations, excluding realized capital gains, was negative. Under the second standard, if dividends are paid out of other than earned surplus, the Company may, without prior insurance regulatory clearance, pay an amount up to the lesser of: (i) 10% of its surplus to policyholders as of the end of the immediately preceding calendar year, or (ii) its statutory net gain from operations for the immediately preceding calendar year (excluding realized capital gains). In addition, the Company will be permitted to pay a dividend to its parent. in excess of the amounts allowed under both standards only if it files notice of its intention to declare such a dividend and the amount thereof with the New York Superintendent of Financial Services (the “Superintendent”) and the Superintendent either approves the distribution of the dividend or does not disapprove the dividend within 30 days of its filing. Under New York Insurance Law, the Superintendent has broad discretion in determining whether the financial condition of a stock life insurance company would support the payment of such dividends to its stockholders. Accumulated Other Comprehensive Income (Loss) Information regarding changes on the balances of each component of AOCI was as follows: Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized Gains (Losses) on Derivatives Total (In thousands) Balance at December 31, 2014 $ 39,312 $ 279 $ 39,591 OCI before reclassifications (50,792 ) 2,760 (48,032 ) Deferred income tax benefit (expense) 17,778 (966 ) 16,812 AOCI before reclassifications, net of income tax 6,298 2,073 8,371 Amounts reclassified from AOCI (4,561 ) — (4,561 ) Deferred income tax benefit (expense) 1,596 — 1,596 Amounts reclassified from AOCI, net of income tax (2,965 ) — (2,965 ) Balance at December 31, 2015 3,333 2,073 5,406 OCI before reclassifications (5,777 ) 1,584 (4,193 ) Deferred income tax benefit (expense) 2,022 (554 ) 1,468 AOCI before reclassifications, net of income tax (422 ) 3,103 2,681 Amounts reclassified from AOCI 2,711 (55 ) 2,656 Deferred income tax benefit (expense) (949 ) 19 (930 ) Amounts reclassified from AOCI, net of income tax 1,762 (36 ) 1,726 Balance at December 31, 2016 1,340 3,067 4,407 OCI before reclassifications 33,257 (4,257 ) 29,000 Deferred income tax benefit (expense) (11,640 ) 1,490 (10,150 ) AOCI before reclassifications, net of income tax 22,957 300 23,257 Amounts reclassified from AOCI 1,714 9 1,723 Deferred income tax benefit (expense) (2) 4,652 (4 ) 4,648 Amounts reclassified from AOCI, net of income tax 6,366 5 6,371 Balance at December 31, 2017 $ 29,323 $ 305 $ 29,628 ______________ (1) See Note 6 for information on offsets to investments related to future policy benefits, DAC and DSI. (2) Includes the $5.3 million impact of the Tax Act related to unrealized investments gains (losses), net of related offsets. See Note 1 for more information. Information regarding amounts reclassified out of each component of AOCI was as follows: AOCI Components Amounts Reclassified from AOCI Statement of Operations and Comprehensive Income (Loss) Location Years Ended December 31, 2017 2016 2015 (In thousands) Net unrealized investment gains (losses): Net unrealized investment gains (losses) $ (1,761 ) $ (2,745 ) $ 4,550 Net investment gains (losses) Net unrealized investment gains (losses) 47 79 228 Net investment income Net unrealized investment gains (losses) — (45 ) (217 ) Net derivative gains (losses) Net unrealized investment gains (losses), before income tax (1,714 ) (2,711 ) 4,561 Income tax (expense) benefit (4,652 ) 949 (1,596 ) Net unrealized investment gains (losses), net of income tax $ (6,366 ) $ (1,762 ) $ 2,965 Unrealized gains (losses) on derivatives - cash flow hedges: Foreign currency swaps $ (9 ) $ 55 $ — Net derivative gains (losses) Gains (losses) on cash flow hedges, before income tax (9 ) 55 — Income tax (expense) benefit 4 (19 ) — Gains (losses) on cash flow hedges, net of income tax $ (5 ) $ 36 $ — Total reclassifications, net of income tax $ (6,371 ) $ (1,726 ) $ 2,965 |
Other Expenses
Other Expenses | 12 Months Ended |
Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Other Expenses | 10. Other Expenses Information on other expenses was as follows: Years Ended December 31, 2017 2016 2015 (In thousands) Compensation $ 13,508 $ 8,535 $ 13,421 Pension, postretirement and postemployment benefit costs — 796 1,334 Commissions 33,129 17,586 21,291 Volume-related costs 3,171 4,943 6,123 Related party expenses on ceded reinsurance 4,743 10,535 11,276 Capitalization of DAC (17,089 ) (4,976 ) (4,768 ) Premium taxes, licenses and fees 3,795 2,590 3,607 Professional services 5,209 1,529 373 Rent and related expenses 481 1,096 1,065 Other 19,006 14,393 11,491 Total other expenses $ 65,953 $ 57,027 $ 65,213 Capitalization of DAC See Note 4 for additional information on the capitalization of DAC. Related Party Expenses See Note 13 for a discussion of related party expenses included in the table above. |
Income Tax
Income Tax | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax | 11. Income Tax The provision for income tax was as follows: Years Ended December 31, 2017 2016 2015 (In thousands) Current: Federal $ 17,352 $ (57,108 ) $ 1,148 Foreign 17 — — Subtotal 17,369 (57,108 ) 1,148 Deferred: Federal (118,094 ) 99,260 840 Provision for income tax expense (benefit) $ (100,725 ) $ 42,152 $ 1,988 The reconciliation of the income tax provision at the U.S. statutory rate to the provision for income tax as reported was as follows: Years Ended December 31, 2017 2016 2015 (In thousands) Tax provision at U.S. statutory rate $ (17,129 ) $ 46,397 $ 8,779 Tax effect of: Rate revaluation due to tax reform (1) (77,308 ) — — Dividend received deduction (5,159 ) (4,732 ) (5,589 ) Prior year tax (493 ) 1,282 (624 ) Tax credits (636 ) (797 ) (580 ) Other, net — 2 2 Provision for income tax expense (benefit) $ (100,725 ) $ 42,152 $ 1,988 __________________ (1) For the year ended December 31, 2017, the Company recognized a $77.3 million benefit in net income from remeasurement of our net deferred tax liability in connection with the Tax Act discussed in Note 1. As the Company completes the analysis of data relevant to the Tax Act, as well as interpret any additional guidance issued by the Internal Revenue Service (“IRS”), U.S. Department of the Treasury, or other relevant organizations, it may make adjustments to these amounts. Deferred income tax represents the tax effect of the differences between the book and tax bases of assets and liabilities. Net deferred income tax assets and liabilities consisted of the following at: December 31, 2017 2016 (In thousands) Deferred income tax assets: Tax credit carryforwards $ 3,463 $ 4,491 Net operating loss carryforwards 3,661 — Other 2,973 2,206 Total deferred income tax assets 10,097 6,697 Deferred income tax liabilities: Investments, including derivatives 958 1,102 Policyholder liabilities and receivables 94,717 210,814 Intangibles 1,384 1,850 Net unrealized investment gains 7,875 2,373 DAC 17,661 10,397 Total deferred income tax liabilities 122,595 226,536 Net deferred income tax asset (liability) $ (112,498 ) $ (219,839 ) At December 31, 2017, the Company had net operating loss carryforwards of approximately $17.4 million and the Company had recorded a related deferred tax asset of $3.7 million which expires in years 2033 - 2037 . Tax credit carryforwards of $3.5 million at December 31, 2017 have an indefinite expiration date. The Company’s liability for unrecognized tax benefits may increase or decrease in the next 12 months. A reasonable estimate of the increase or decrease cannot be made at this time. However, the Company continues to believe that the ultimate resolution of the pending issues will not result in a material change to its financial statements, although the resolution of income tax matters could impact the Company’s effective tax rate for a particular future period. A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows: Years Ended December 31, 2017 2016 2015 (In thousands) Balance at January 1, $ 1,204 $ 983 $ 983 Additions for tax positions of prior years 49 300 — Reductions for tax positions of prior years (62 ) (23 ) — Additions for tax positions of current year 169 300 — Reductions for tax positions of current year (318 ) — — Settlements with tax authorities (66 ) (356 ) — Balance at December 31, $ 976 $ 1,204 $ 983 Unrecognized tax benefits that, if recognized would impact the effective rate $ 976 $ 1,130 $ 909 The Company classifies interest accrued related to unrecognized tax benefits in interest expense, included within other expenses, while penalties are included in income tax expense. Interest related to unrecognized tax benefits was not significant. The Company had no penalties for each of the years ended December 31, 2017, 2016 and 2015. The Dividend Received Deduction (“DRD”) reduces the amount of dividend income subject to tax and is a significant component of the difference between the actual tax expense and expected amount determined using the federal statutory tax rate. The Tax Act has changed the DRD amount applicable to insurance companies to a 70% company share and a 50% dividend received deduction for eligible dividends. For the years ended December 31, 2017 , 2016 and 2015 , the Company recognized an income tax benefit of $5.6 million , $3.9 million and $5.6 million , respectively, related to the separate account DRD. The 2017 benefit included an expense of $400 thousand related to a true-up of the 2016 tax return. The 2016 and 2015 benefit included a benefit of $900 thousand and $600 thousand related to a true-up of the 2015 and 2014 tax returns, respectively. The Company is under continuous examination by the IRS and other tax authorities in jurisdictions in which the Company has significant business operations. The income tax years under examination vary by jurisdiction and subsidiary. The Company is no longer subject to U.S. federal, state or local income tax examinations for years prior to 2007. Management believes it has established adequate tax liabilities, and final resolution of the audit for the years 2007 and forward is not expected to have a material impact on the Company’s financial statements. Tax Sharing Agreements For the periods prior to the Separation from MetLife, Brighthouse Life Insurance Company of NY will be included in a consolidated U.S. life and non-life federal income tax return in accordance with the provisions of the Internal Revenue Code of 1986, as amended (the “Code”). Current taxes (and the benefits of tax attributes such as losses) are allocated to Brighthouse Life Insurance Company of NY under the consolidated tax return regulations and a tax sharing agreement with MetLife. This tax sharing agreement states that federal taxes will be computed on a separate return basis with benefits for losses. Brighthouse Life Insurance Company and any directly owned life insurance and reinsurance company subsidiaries (including the Company and BRCD) entered in a tax sharing agreement to join a life consolidated federal income tax return. The tax sharing agreements state that federal taxes are generally allocated to the Company as if each entity were filing its own separate company tax return, except that net operating losses and certain other tax attributes are characterized as realized (or realizable) when those tax attributes are realized (or realizable) by the Company. Related Party Income Tax Transactions The Company also entered into a tax separation agreement with MetLife (the “Tax Separation Agreement”). Among other things, the Tax Separation Agreement governs the allocation between MetLife and us of the responsibility for the taxes of the MetLife group. The Tax Separation Agreement also allocates rights, obligations and responsibilities in connection with certain administrative matters relating to the preparation of tax returns and control of tax audits and other proceedings relating to taxes. In October 2017, MetLife paid $55.6 million to Brighthouse Life Insurance Company of NY under the Tax Separation Agreement. At December 31, 2017, a $958 thousand receivable related to this agreement is included in other assets. |
Contingencies, Commitments and
Contingencies, Commitments and Guarantees | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies, Commitments and Guarantees | 12. Contingencies, Commitments and Guarantees Contingencies Litigation Sales Practices Claims Over the past several years, the Company has faced claims and regulatory inquiries and investigations, alleging improper marketing or sales of individual life insurance policies, or annuities. The Company continues to defend vigorously against the claims in these matters. The Company believes adequate provision has been made in its financial statements for all probable and reasonably estimable losses for sales practices matters or other products. Unclaimed Property Litigation Total Asset Recovery Services, LLC on its own behalf and on behalf of the State of New York v. Brighthouse Financial, Inc. et al (Supreme Court, New York County, NY, second amended complaint filed November 17, 2017). Total Asset Recovery Services, LLC. (the “Relator”) has brought a qui tam action against Brighthouse Financial, Inc. and its subsidiaries and affiliates under the New York False Claims Act seeking to recover damages on behalf of the State of New York. The action originally was filed under seal on or about December 3, 2010. The State of New York declined to intervene in the action, and the Relator is now prosecuting the action. The Relator alleges that from on or about April 1, 1986 and continuing annually through on or about September 10, 2017, the defendants violated New York State Finance Law Section 189 (1) (g) by failing to timely report and deliver unclaimed insurance property to the State of New York. The Relator is seeking, among other things, treble damages, penalties, expenses and attorneys’ fees and prejudgment interest. No specific dollar amount of damages is specified by the Relator who also is suing numerous insurance companies and John Doe defendants. The Brighthouse defendants intend to defend this action vigorously. Summary Various litigation, claims and assessments against the Company, in addition to those discussed previously and those otherwise provided for in the Company’s financial statements, have arisen in the course of the Company's business, including, but not limited to, in connection with its activities as an insurer, investor, and taxpayer. Further, state insurance regulatory authorities and other federal and state authorities regularly make inquiries and conduct investigations concerning the Company's compliance with applicable insurance and other laws and regulations. It is not possible to predict the ultimate outcome of all pending investigations and legal proceedings. In some of the matters referred to previously, large and/or indeterminate amounts, including punitive and treble damages, are sought. Although in light of these considerations it is possible that an adverse outcome in certain cases could have a material effect upon the Company's financial position, based on information currently known by the Company's management, in its opinion, the outcomes of such pending investigations and legal proceedings are not likely to have such an effect. However, given the large and/or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation, it is possible that an adverse outcome in certain matters could, from time to time, have a material effect on the Company's net income or cash flows in particular quarterly or annual periods. Insolvency Assessments Most of the jurisdictions in which the Company is admitted to transact business require insurers doing business within the jurisdiction to participate in guaranty associations, which are organized to pay contractual benefits owed pursuant to insurance policies issued by impaired, insolvent or failed insurers. These associations levy assessments, up to prescribed limits, on all member insurers in a particular state on the basis of the proportionate share of the premiums written by member insurers in the lines of business in which the impaired, insolvent or failed insurer engaged. Some states permit member insurers to recover assessments paid through full or partial premium tax offsets. Assets and liabilities held for insolvency assessments were as follows: December 31, 2017 2016 (In thousands) Other Assets: Premium tax offset for future discounted and undiscounted assessments $ 300 $ 300 Premium tax offsets currently available for paid assessments 51 1,829 Total $ 351 $ 2,129 Other Liabilities: Insolvency assessments $ 400 $ 400 Commitments Mortgage Loan Commitments The Company commits to lend funds under mortgage loan commitments. The amounts of these mortgage loan commitments were $355 thousand and $42 thousand at December 31, 2017 and 2016 , respectively. Commitments to Fund Private Corporate Bond Investments The Company commits to lend funds under private corporate bond investments. The amounts of these unfunded commitments were $11.6 million at December 31, 2017 . The Company did not have commitments to lend funds under private corporate bond investments at December 31, 2016. Guarantees In the normal course of its business, the Company has provided certain indemnities, guarantees and commitments to third parties such that it may be required to make payments now or in the future. In the context of acquisition, disposition, investment and other transactions, the Company has provided indemnities and guarantees, including those related to tax, environmental and other specific liabilities and other indemnities and guarantees that are triggered by, among other things, breaches of representations, warranties or covenants provided by the Company. In addition, in the normal course of business, the Company provides indemnifications to counterparties in contracts with triggers similar to the foregoing, as well as for certain other liabilities, such as third-party lawsuits. These obligations are often subject to time limitations that vary in duration, including contractual limitations and those that arise by operation of law, such as applicable statutes of limitation. In some cases, the maximum potential obligation under the indemnities and guarantees is subject to a contractual limitation, while in other cases such limitations are not specified or applicable. Since certain of these obligations are not subject to limitations, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these guarantees in the future. Management believes that it is unlikely the Company will have to make any material payments under these indemnities, guarantees, or commitments. In addition, the Company indemnifies its directors and officers as provided in its charters and by-laws. Also, the Company indemnifies its agents for liabilities incurred as a result of their representation of the Company’s interests. Since these indemnities are generally not subject to limitation with respect to duration or amount, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these indemnities in the future. The Company had no liability for indemnities, guarantees and commitments at both December 31, 2017 and 2016 . |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 13. Related Party Transactions The Company has various existing arrangements with its Brighthouse affiliates and MetLife for services necessary to conduct its activities. Subsequent to the Separation, certain of the MetLife services continued, as provided for under a master service agreement and various transition services agreements entered into in connection with the Separation. Non-Broker-Dealer Transactions The following table summarizes income and expense from transactions with related parties (excluding broker-dealer transactions) for the years indicated: Years Ended December 31, 2017 2016 2015 (In thousands) Income $ (303,626 ) $ 50,358 $ 16,759 Expense $ (66,252 ) $ (76,613 ) $ (44,358 ) The following table summarizes assets and liabilities from transactions with related parties (excluding broker-dealer transactions) at: December 31, 2017 2016 (In thousands) Assets $ 536,843 $ 322,394 Liabilities $ 448,237 $ 99,641 The material arrangements between the Company and its related parties are as follows: Reinsurance Agreements The Company has reinsurance agreements with its parent, Brighthouse Life Insurance Company, and certain of MetLife, Inc.’s subsidiaries. See Note 5 for further discussion of the related party reinsurance agreements. Capital Support Arrangement MetLife previously had a net worth maintenance agreement with the Company, pursuant to which MetLife agreed to cause the Company to meet specified capital and surplus levels and had guaranteed liquidity necessary to enable it to meet its current obligations on a timely basis. In connection with the Separation, this net worth maintenance agreement was terminated on August 4, 2017. Investment Transactions Prior to the Separation, the Company had extended loans to certain subsidiaries of MetLife, Inc. Additionally, in the ordinary course of business, the Company had previously transferred invested assets, primarily consisting of fixed maturity securities, to and from former affiliates. See Note 6 for further discussion of the related party investment transactions. Shared Services and Overhead Allocations Brighthouse affiliates and MetLife provide the Company certain services, which include, but are not limited to, treasury, financial planning and analysis, legal, human resources, tax planning, internal audit, financial reporting, and information technology. In 2017, the Company is charged for the MetLife services through a transition services agreement and allocated to the legal entities and products within the Company. When specific identification to a particular legal entity and/or product is not practicable, an allocation methodology based on various performance measures or activity-based costing, such as sales, new policies/contracts issued, reserves, and in-force policy counts is used. The bases for such charges are modified and adjusted by management when necessary or appropriate to reflect fairly and equitably the actual incidence of cost incurred by the Company and/or affiliate. Management believes that the methods used to allocate expenses under these arrangements are reasonable. Expenses incurred with the Brighthouse affiliates and MetLife related to these arrangements, recorded in other expenses, were $38.0 million , $19.9 million and $30.4 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Broker-Dealer Transactions Beginning in March 2017, Brighthouse Securities, LLC, a registered broker-dealer affiliate, began distributing certain of the Company’s existing and future variable insurance products, and the MetLife broker-dealers discontinued such distributions. Prior to March 2017, the Company recognized related party revenues and expenses arising from transactions with MetLife broker-dealers that previously sold the Company’s variable annuity and life products. The related party expense for the Company was commissions collected on the sale of variable products by the Company and passed through to the broker-dealer. The related party revenue for the Company was fee income from trusts and mutual funds whose shares serve as investment options of policyholders of the Company. The following table summarizes income and expense from transactions with related party broker-dealers for the years indicated: Years Ended December 31, 2017 2016 2015 (In thousands) Fee income $ 12,393 $ 9,968 $ 10,515 Commission expense $ 39,306 $ 32,191 $ 30,672 The following table summarizes assets and liabilities from transactions with related party broker-dealers as follow at: December 31, 2017 2016 (In thousands) Fee income receivables $ 1,090 $ 934 Secured demand notes $ — $ — |
Consolidated Summary of Investm
Consolidated Summary of Investments - Other Than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2017 | |
Consolidated Summary of Investments - Other Than Investments in Related Parties [Abstract] | |
Consolidated Summary of Investments - Other Than Investments in Related Parties | Brighthouse Life Insurance Company of NY (An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.) Schedule I Summary of Investments — Other Than Investments in Related Parties December 31, 2017 (In thousands) Types of Investments Amortized Cost (1) Estimated Fair Amount at Fixed maturity securities: Bonds: U.S. government and agency securities $ 535,757 $ 547,063 $ 547,063 Public utilities 53,821 56,323 56,323 State and political subdivision securities 64,056 70,286 70,286 Foreign government securities 15,833 16,403 16,403 All other corporate bonds 1,021,214 1,050,415 1,050,415 Total bonds 1,690,681 1,740,490 1,740,490 Mortgage-backed and asset-backed securities 474,453 481,073 481,073 Total fixed maturity securities 2,165,134 2,221,563 2,221,563 Mortgage loans 394,863 394,863 Other invested assets 3,784 3,784 Total investments $ 2,563,781 $ 2,620,210 ______________ (1) Amortized cost for fixed maturity securities and mortgage loans represents original cost reduced by repayments, valuation allowances and impairments from other-than-temporary declines in estimated fair value that are charged to earnings and adjusted for amortization of premiums or accretion of discounts. |
Consolidated Supplementary Insu
Consolidated Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2017 | |
Supplementary Insurance Information [Abstract] | |
Consolidated Supplementary Insurance Information | Brighthouse Life Insurance Company of NY (An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.) Schedule III Supplementary Insurance Information December 31, 2017 and 2016 (In thousands) Segment DAC Future Policy Policyholder Unearned Premiums (1), (2) Unearned 2017 Annuities $ 107,760 $ 350,512 $ 1,324,527 $ — $ 2,347 Life 23,101 327,281 18,803 1,033 — Corporate & Other 198 8,986 — 17 — Total $ 131,059 $ 686,779 $ 1,343,330 $ 1,050 $ 2,347 2016 Annuities $ 60,689 $ 325,468 $ 1,179,305 $ — $ 2,164 Life 24,265 299,274 23,045 1,064 — Corporate & Other 219 9,550 — 22 — Total $ 85,173 $ 634,292 $ 1,202,350 $ 1,086 $ 2,164 ______________ (1) Amounts are included within the future policy benefits and other policy-related balances column. (2) Includes premiums received in advance. Brighthouse Life Insurance Company of NY (An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.) Schedule III Supplementary Insurance Information — (continued) December 31, 2017 , 2016 and 2015 (In thousands) Segment Premiums and Net Policyholder Benefits Amortization of Other 2017 Annuities $ 113,225 $ 56,936 $ 15,118 $ (42,603 ) $ 48,171 Life 14,425 19,018 18,501 2,585 12,868 Corporate & Other 2,354 10,373 1,030 21 4,914 Total $ 130,004 $ 86,327 $ 34,649 $ (39,997 ) $ 65,953 2016 Annuities $ 122,830 $ 27,632 $ 62,676 $ 20,927 $ 37,537 Life 28,978 17,033 27,122 2,272 16,134 Corporate & Other 1,931 13,115 2,096 18 3,356 Total $ 153,739 $ 57,780 $ 91,894 $ 23,217 $ 57,027 2015 Annuities $ 139,905 $ 23,127 $ 65,764 $ 36,788 $ 45,835 Life 40,617 15,379 34,118 66,568 16,570 Corporate & Other 2,255 14,438 1,651 470 2,808 Total $ 182,777 $ 52,944 $ 101,533 $ 103,826 $ 65,213 ______________ (1) See Note 2 of the Notes to the Financial Statements for the basis of allocation of net investment income. |
Consolidated Reinsurance
Consolidated Reinsurance | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | |
Consolidated Reinsurance | Brighthouse Life Insurance Company of NY (An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.) Schedule IV Reinsurance December 31, 2017 , 2016 and 2015 (Dollars in thousands) Gross Amount Ceded Assumed Net Amount % Amount Assumed to Net 2017 Life insurance in-force $ 48,509,917 $ 41,167,006 $ — $ 7,342,911 — % Insurance premium Life insurance (1) $ 93,196 $ 66,928 $ — $ 26,268 — % Accident & health insurance — — — — — % Total insurance premium $ 93,196 $ 66,928 $ — $ 26,268 — % 2016 Life insurance in-force $ 50,748,993 $ 43,894,276 $ — $ 6,854,717 — % Insurance premium Life insurance (1) $ 109,733 $ 58,994 $ — $ 50,739 — % Accident & health insurance — — — — — % Total insurance premium $ 109,733 $ 58,994 $ — $ 50,739 — % 2015 Life insurance in-force $ 53,017,387 $ 48,212,042 $ — $ 4,805,345 — % Insurance premium Life insurance (1) $ 122,110 $ 50,238 $ — $ 71,872 — % Accident & health insurance — — — — — % Total insurance premium $ 122,110 $ 50,238 $ — $ 71,872 — % ______________ (1) Includes annuities with life contingencies. For the year ended December 31, 2017 , reinsurance ceded included related party transactions for life insurance in-force of $30.6 billion , and life insurance premiums of $51.9 million . For the year ended December 31, 2016 , reinsurance ceded included related party transactions for life insurance in-force of $32.5 billion , and life insurance premiums of $44.2 million . For the year ended December 31, 2015 , reinsurance ceded included related party transactions for life insurance in-force of $36.3 billion , and life insurance premiums of $37.1 million . |
Business, Basis of Presentati24
Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported on the financial statements. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company’s business and operations. Actual results could differ from these estimates. |
Consolidation of Subsidiaries | Since the Company is a member of a controlled group of affiliated companies, its results may not be indicative of those of a stand-alone entity. |
Future Policy Benefit Liabilities and Policyholder Account Balances | Future Policy Benefit Liabilities and Policyholder Account Balances The Company establishes liabilities for future amounts payable under insurance policies. Insurance liabilities are generally calculated as the present value of future expected benefits to be paid, reduced by the present value of future expected premiums. Such liabilities are established based on methods and underlying assumptions that are in accordance with GAAP and applicable actuarial standards. The principal assumptions used in the establishment of liabilities for future policy benefits are mortality, policy lapse, policy renewal, investment returns, inflation, expenses and other contingent events as appropriate to the respective product type. These assumptions are established at the time the policy is issued and locked in and are intended to estimate the experience for the period the policy benefits are payable. Utilizing these assumptions, liabilities are established on a block of business basis. For long duration insurance contracts, assumptions such as mortality and interest rates are locked in upon the issuance of new business. However, significant adverse changes in experience on such contracts may require the establishment of premium deficiency reserves. Such reserves are determined based on the then current assumptions and do not include a provision for adverse deviation. The Company regularly reviews its estimates of liabilities for future policy benefits and compares them with its actual experience. Differences result in changes to the liability balances with related charges or credits to benefit expenses in the period in which the changes occur. Policyholder account balances relate to customer deposits on universal life insurance and fixed and variable deferred annuity contracts and are equal to the sum of deposits, plus interest credited, less charges and withdrawals. Product Type: Measurement Assumptions: Nonparticipating life insurance Aggregate of the present value of expected future benefit payments and related expenses less the present value of expected future net premiums. Assumptions as to mortality and persistency are based upon the Company’s experience when the basis of the liability is established. Interest rate assumptions for the aggregate future policy benefit liabilities range from 3% to 5%. Individual and group fixed annuities after annuitization Present value of expected future payments. Interest rate assumptions used in establishing such liabilities range from 3% to 6%. Policyholder account balances are equal to: (i) policy account values, which consist of an accumulation of gross premium payments; and (ii) credited interest, ranging from 1% to 7% , less expenses, mortality charges and withdrawals. |
Variable Annuity Guaranteed Minimum Benefits | The Company issues directly, certain variable annuity products with guaranteed minimum benefits that provide the policyholder a minimum return based on their initial deposit (i.e., the benefit base) less withdrawals. These guarantees are accounted for as insurance liabilities or as embedded derivatives depending on how and when the benefit is paid. Specifically, a guarantee is accounted for as an embedded derivative if a guarantee is paid without requiring (i) the occurrence of specific insurable event, or (ii) the policyholder to annuitize. Alternatively, a guarantee is accounted for as an insurance liability if the guarantee is paid only upon either (i) the occurrence of a specific insurable event, or (ii) annuitization. In certain cases, a guarantee may have elements of both an insurance liability and an embedded derivative and in such cases the guarantee is split and accounted for under both models. Guarantees accounted for as insurance liabilities in future policy benefits include guaranteed minimum death benefits (“GMDBs”), the portion of guaranteed minimum income benefits (“GMIBs”) that require annuitization, and the life-contingent portion of guaranteed minimum withdrawal benefits (“GMWBs”). Guarantees accounted for as embedded derivatives in policyholder account balances include the non life-contingent portion of GMWBs, guaranteed minimum accumulation benefits (“GMABs”) and the portion of GMIBs that do not require annuitization. At inception, the Company attributes to the embedded derivative a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. Any additional fees represent “excess” fees and are reported in universal life and investment-type product policy fees. The Company issues variable annuity products with guaranteed minimum benefits. GMABs, the non-life-contingent portion of GMWBs and the portion of certain GMIBs that do not require annuitization are accounted for as embedded derivatives in policyholder account balances and are further discussed in Note 7 . Guarantees accounted for as insurance liabilities include: Guarantee: Measurement Assumptions: GMDBs • A return of purchase payment upon death even if the account value is reduced to zero. • Present value of expected death benefits in excess of the projected account balance recognizing the excess ratably over the accumulation period based on the present value of total expected assessments. • An enhanced death benefit may be available for an additional fee. • Assumptions are consistent with those used for amortizing DAC, and are thus subject to the same variability and risk. • Investment performance and volatility assumptions are consistent with the historical experience of the appropriate underlying equity index, such as the Standard & Poor’s Global Ratings (“S&P”) 500 Index. • Benefit assumptions are based on the average benefits payable over a range of scenarios. GMIBs • After a specified period of time determined at the time of issuance of the variable annuity contract, a minimum accumulation of purchase payments, even if the account value is reduced to zero, that can be annuitized to receive a monthly income stream that is not less than a specified amount. • Present value of expected income benefits in excess of the projected account balance at any future date of annuitization and recognizing the excess ratably over the accumulation period based on present value of total expected assessments. • Certain contracts also provide for a guaranteed lump sum return of purchase premium in lieu of the annuitization benefit. • Assumptions are consistent with those used for estimating GMDB liabilities. • Calculation incorporates an assumption for the percentage of the potential annuitizations that may be elected by the contract holder. GMWBs • A return of purchase payment via partial withdrawals, even if the account value is reduced to zero, provided that cumulative withdrawals in a contract year do not exceed a certain limit. • Expected value of the life contingent payments and expected assessments using assumptions consistent with those used for estimating the GMDB liabilities. • Certain contracts include guaranteed withdrawals that are life contingent. Embedded Derivatives Embedded derivatives principally include certain direct variable annuity guarantees and certain affiliated ceded reinsurance agreements related to such variable annuity guarantees. Embedded derivatives are recorded at estimated fair value with changes in estimated fair value reported in net income. The Company issues certain variable annuity products with guaranteed minimum benefits. GMWBs, GMABs and certain GMIBs contain embedded derivatives, which are measured at estimated fair value separately from the host variable annuity contract, with changes in estimated fair value reported in net derivative gains (losses). These embedded derivatives are classified within policyholder account balances on the balance sheets. The Company’s actuarial department calculates the fair value of these embedded derivatives, which are estimated as the present value of projected future benefits minus the present value of projected future fees using actuarial and capital market assumptions including expectations concerning policyholder behavior. The calculation is based on in-force business, and is performed using standard actuarial valuation software which projects future cash flows from the embedded derivative over multiple risk neutral stochastic scenarios using observable risk-free rates. Capital market assumptions, such as risk-free rates and implied volatilities, are based on market prices for publicly traded instruments to the extent that prices for such instruments are observable. Implied volatilities beyond the observable period are extrapolated based on observable implied volatilities and historical volatilities. Actuarial assumptions, including mortality, lapse, withdrawal and utilization, are unobservable and are reviewed at least annually based on actuarial studies of historical experience. The valuation of these guarantee liabilities includes nonperformance risk adjustments and adjustments for a risk margin related to non-capital market inputs. The nonperformance adjustment is determined by taking into consideration publicly available information relating to spreads in the secondary market for Brighthouse Financial, Inc.’s debt. These observable spreads are then adjusted to reflect the priority of these liabilities and claims paying ability of the issuing insurance subsidiaries as compared to Brighthouse Financial, Inc.’s overall financial strength. Risk margins are established to capture the non-capital market risks of the instrument which represent the additional compensation a market participant would require to assume the risks related to the uncertainties of such actuarial assumptions as annuitization, premium persistency, partial withdrawal and surrenders. The establishment of risk margins requires the use of significant management judgment, including assumptions of the amount and cost of capital needed to cover the guarantees. These guarantees may be more costly than expected in volatile or declining equity markets. Market conditions including, but not limited to, changes in interest rates, equity indices, market volatility and foreign currency exchange rates; changes in nonperformance risk; and variations in actuarial assumptions regarding policyholder behavior, mortality and risk margins related to non-capital market inputs, may result in significant fluctuations in the estimated fair value of the guarantees that could materially affect net income. The Company ceded to a former affiliate the risk associated with certain of the GMIBs, GMABs and GMWBs described above. These reinsurance agreements contain embedded derivatives and are included within premiums, reinsurance and other receivables on the balance sheets with changes in estimated fair value reported in net derivative gains (losses). The value of the embedded derivatives on the ceded risk is determined using a methodology consistent with that described previously for the guarantees directly written by the Company with the exception of the input for nonperformance risk that reflects the credit of the reinsurer. |
Recognition of Insurance Revenues and Deposits | Recognition of Insurance Revenues and Deposits Premiums related to traditional life insurance and annuity contracts with life contingencies are recognized as revenues when due from policyholders. Policyholder benefits and expenses are provided to recognize profits over the estimated lives of the insurance policies. When premiums are due over a significantly shorter period than the period over which policyholder benefits are incurred, any excess profit is deferred and recognized into earnings in proportion to insurance in-force or, for annuities, the amount of expected future policy benefit payments. Deposits related to universal life insurance and investment-type products are credited to policyholder account balances. Revenues from such contracts consist of asset-based investment management fees, mortality charges, risk charges, policy administration fees, and surrender charges. These fees are recognized when assessed to the contract holder and are included in universal life and investment-type product policy fees on the statements of operations. Premiums, policy fees, policyholder benefits and expenses are presented net of reinsurance. |
Deferred Policy Acquisition Costs and Value of Business Acquired | Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles The Company incurs significant costs in connection with acquiring new and renewal insurance business. Costs that are related directly to the successful acquisition or renewal of insurance contracts are capitalized as DAC. Such costs include: • incremental direct costs of contract acquisition, such as commissions; • the portion of an employee’s total compensation and benefits related to time spent selling, underwriting or processing the issuance of new and renewal insurance business only with respect to actual policies acquired or renewed; and • other essential direct costs that would not have been incurred had a policy not been acquired or renewed. All other acquisition-related costs, including those related to general advertising and solicitation, market research, agent training, product development, unsuccessful sales and underwriting efforts, as well as all indirect costs, are expensed as incurred. Value of business acquired (“VOBA”) is an intangible asset resulting from a business combination that represents the excess of book value over the estimated fair value of acquired insurance, annuity, and investment-type contracts in-force as of the acquisition date. The estimated fair value of the acquired liabilities is based on projections, by each block of business, of future policy and contract charges, premiums, mortality and morbidity, separate account performance, surrenders, operating expenses, investment returns, nonperformance risk adjustment and other factors. Actual experience on the purchased business may vary from these projections. DAC and VOBA on traditional long-duration insurance contracts is amortized based on actual and expected future gross premiums while DAC and VOBA on deferred annuities is amortized based on estimated gross profits. The recoverability of DAC and VOBA is dependent upon the future profitability of the related business. DAC and VOBA are aggregated on the financial statements for reporting purposes. See Note 4 for additional information on DAC and VOBA amortization. The recovery of DAC and VOBA is dependent upon the future profitability of the related business. DAC and VOBA are aggregated on the financial statements for reporting purposes. Nonparticipating and Non-Dividend-Paying Traditional Contracts The Company amortizes DAC and VOBA related to these contracts (primarily term insurance) over the appropriate premium paying period in proportion to the actual and expected future gross premiums that were set at contract issue. The expected premiums are based upon the premium requirement of each policy and assumptions for mortality, persistency and investment returns at policy issuance, or policy acquisition (as it relates to VOBA), include provisions for adverse deviation, and are consistent with the assumptions used to calculate future policy benefit liabilities. These assumptions are not revised after policy issuance or acquisition unless the DAC or VOBA balance is deemed to be unrecoverable from future expected profits. Absent a premium deficiency, variability in amortization after policy issuance or acquisition is caused only by variability in premium volumes. Fixed and Variable Deferred Annuity Contracts The Company amortizes DAC and VOBA related to these contracts over the estimated lives of the contracts in proportion to actual and expected future gross profits. The amortization includes interest based on rates in effect at inception or acquisition of the contracts. The amount of future gross profits is dependent principally upon returns in excess of the amounts credited to policyholders, mortality, persistency, interest crediting rates, expenses to administer the business, creditworthiness of reinsurance counterparties, the effect of any hedges used and certain economic variables, such as inflation. Of these factors, the Company anticipates that investment returns, expenses and persistency are reasonably likely to significantly impact the rate of DAC and VOBA amortization. Each reporting period, the Company updates the estimated gross profits with the actual gross profits for that period. When the actual gross profits change from previously estimated gross profits, the cumulative DAC and VOBA amortization is re-estimated and adjusted by a cumulative charge or credit to current operations. When actual gross profits exceed those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the actual gross profits are below the previously estimated gross profits. Each reporting period, the Company also updates the actual amount of business remaining in-force, which impacts expected future gross profits. When expected future gross profits are below those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the expected future gross profits are above the previously estimated expected future gross profits. Each period, the Company also reviews the estimated gross profits for each block of business to determine the recoverability of DAC and VOBA balances. Factors Impacting Amortization Separate account rates of return on variable deferred annuity contracts affect in-force account balances on such contracts each reporting period, which can result in significant fluctuations in amortization of DAC and VOBA. Returns that are higher than the Company’s long-term expectation produce higher account balances, which increases the Company’s future fee expectations and decreases future benefit payment expectations on minimum death and living benefit guarantees, resulting in higher expected future gross profits. The opposite result occurs when returns are lower than the Company’s long-term expectation. The Company’s practice to determine the impact of gross profits resulting from returns on separate accounts assumes that long-term appreciation in equity markets is not changed by short-term market fluctuations, but is only changed when sustained interim deviations are expected. The Company monitors these events and only changes the assumption when its long-term expectation changes. The Company also periodically reviews other long-term assumptions underlying the projections of estimated gross profits. These assumptions primarily relate to investment returns, interest crediting rates, mortality, persistency and expenses to administer business. Management annually updates assumptions used in the calculation of estimated gross profits which may have significantly changed. If the update of assumptions causes expected future gross profits to increase, DAC and VOBA amortization will generally decrease, resulting in a current period increase to earnings. The opposite result occurs when the assumption update causes expected future gross profits to decrease. Periodically, the Company modifies product benefits, features, rights or coverages that occur by the exchange of a contract for a new contract, or by amendment, endorsement, or rider to a contract, or by election or coverage within a contract. If such modification, referred to as an internal replacement, substantially changes the contract, the associated DAC or VOBA is written off immediately through income and any new deferrable costs associated with the replacement contract are deferred. If the modification does not substantially change the contract, the DAC or VOBA amortization on the original contract will continue and any acquisition costs associated with the related modification are expensed. Amortization of DAC and VOBA is attributed to net investment gains (losses) and net derivative gains (losses), and to other expenses for the amount of gross profits originating from transactions other than investment gains and losses. Unrealized investment gains and losses represent the amount of DAC and VOBA that would have been amortized if such gains and losses had been recognized. |
Deferred Policy Acquisition Costs and Value of Business Acquired | Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles The Company incurs significant costs in connection with acquiring new and renewal insurance business. Costs that are related directly to the successful acquisition or renewal of insurance contracts are capitalized as DAC. Such costs include: • incremental direct costs of contract acquisition, such as commissions; • the portion of an employee’s total compensation and benefits related to time spent selling, underwriting or processing the issuance of new and renewal insurance business only with respect to actual policies acquired or renewed; and • other essential direct costs that would not have been incurred had a policy not been acquired or renewed. All other acquisition-related costs, including those related to general advertising and solicitation, market research, agent training, product development, unsuccessful sales and underwriting efforts, as well as all indirect costs, are expensed as incurred. Value of business acquired (“VOBA”) is an intangible asset resulting from a business combination that represents the excess of book value over the estimated fair value of acquired insurance, annuity, and investment-type contracts in-force as of the acquisition date. The estimated fair value of the acquired liabilities is based on projections, by each block of business, of future policy and contract charges, premiums, mortality and morbidity, separate account performance, surrenders, operating expenses, investment returns, nonperformance risk adjustment and other factors. Actual experience on the purchased business may vary from these projections. DAC and VOBA on traditional long-duration insurance contracts is amortized based on actual and expected future gross premiums while DAC and VOBA on deferred annuities is amortized based on estimated gross profits. The recoverability of DAC and VOBA is dependent upon the future profitability of the related business. DAC and VOBA are aggregated on the financial statements for reporting purposes. See Note 4 for additional information on DAC and VOBA amortization. The recovery of DAC and VOBA is dependent upon the future profitability of the related business. DAC and VOBA are aggregated on the financial statements for reporting purposes. Nonparticipating and Non-Dividend-Paying Traditional Contracts The Company amortizes DAC and VOBA related to these contracts (primarily term insurance) over the appropriate premium paying period in proportion to the actual and expected future gross premiums that were set at contract issue. The expected premiums are based upon the premium requirement of each policy and assumptions for mortality, persistency and investment returns at policy issuance, or policy acquisition (as it relates to VOBA), include provisions for adverse deviation, and are consistent with the assumptions used to calculate future policy benefit liabilities. These assumptions are not revised after policy issuance or acquisition unless the DAC or VOBA balance is deemed to be unrecoverable from future expected profits. Absent a premium deficiency, variability in amortization after policy issuance or acquisition is caused only by variability in premium volumes. Fixed and Variable Deferred Annuity Contracts The Company amortizes DAC and VOBA related to these contracts over the estimated lives of the contracts in proportion to actual and expected future gross profits. The amortization includes interest based on rates in effect at inception or acquisition of the contracts. The amount of future gross profits is dependent principally upon returns in excess of the amounts credited to policyholders, mortality, persistency, interest crediting rates, expenses to administer the business, creditworthiness of reinsurance counterparties, the effect of any hedges used and certain economic variables, such as inflation. Of these factors, the Company anticipates that investment returns, expenses and persistency are reasonably likely to significantly impact the rate of DAC and VOBA amortization. Each reporting period, the Company updates the estimated gross profits with the actual gross profits for that period. When the actual gross profits change from previously estimated gross profits, the cumulative DAC and VOBA amortization is re-estimated and adjusted by a cumulative charge or credit to current operations. When actual gross profits exceed those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the actual gross profits are below the previously estimated gross profits. Each reporting period, the Company also updates the actual amount of business remaining in-force, which impacts expected future gross profits. When expected future gross profits are below those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the expected future gross profits are above the previously estimated expected future gross profits. Each period, the Company also reviews the estimated gross profits for each block of business to determine the recoverability of DAC and VOBA balances. Factors Impacting Amortization Separate account rates of return on variable deferred annuity contracts affect in-force account balances on such contracts each reporting period, which can result in significant fluctuations in amortization of DAC and VOBA. Returns that are higher than the Company’s long-term expectation produce higher account balances, which increases the Company’s future fee expectations and decreases future benefit payment expectations on minimum death and living benefit guarantees, resulting in higher expected future gross profits. The opposite result occurs when returns are lower than the Company’s long-term expectation. The Company’s practice to determine the impact of gross profits resulting from returns on separate accounts assumes that long-term appreciation in equity markets is not changed by short-term market fluctuations, but is only changed when sustained interim deviations are expected. The Company monitors these events and only changes the assumption when its long-term expectation changes. The Company also periodically reviews other long-term assumptions underlying the projections of estimated gross profits. These assumptions primarily relate to investment returns, interest crediting rates, mortality, persistency and expenses to administer business. Management annually updates assumptions used in the calculation of estimated gross profits which may have significantly changed. If the update of assumptions causes expected future gross profits to increase, DAC and VOBA amortization will generally decrease, resulting in a current period increase to earnings. The opposite result occurs when the assumption update causes expected future gross profits to decrease. Periodically, the Company modifies product benefits, features, rights or coverages that occur by the exchange of a contract for a new contract, or by amendment, endorsement, or rider to a contract, or by election or coverage within a contract. If such modification, referred to as an internal replacement, substantially changes the contract, the associated DAC or VOBA is written off immediately through income and any new deferrable costs associated with the replacement contract are deferred. If the modification does not substantially change the contract, the DAC or VOBA amortization on the original contract will continue and any acquisition costs associated with the related modification are expensed. Amortization of DAC and VOBA is attributed to net investment gains (losses) and net derivative gains (losses), and to other expenses for the amount of gross profits originating from transactions other than investment gains and losses. Unrealized investment gains and losses represent the amount of DAC and VOBA that would have been amortized if such gains and losses had been recognized. |
Deferred Sales Inducements | The Company also has deferred sales inducements (“DSI”) and value of distribution agreements (“VODA”) which are included in other assets. The Company defers sales inducements and amortizes them over the life of the policy using the same methodology and assumptions used to amortize DAC. The amortization of DSI is included in policyholder benefits and claims. VODA represents the present value of expected future profits associated with the expected future business derived from the distribution agreements acquired as part of a business combination. The VODA associated with past business combinations is amortized over useful lives ranging from 10 to 40 years and such amortization is included in other expenses. Each year, or more frequently if circumstances indicate a possible impairment issue exists, the Company reviews DSI and VODA to determine whether the assets are impaired. |
Reinsurance | Reinsurance For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. Cessions under reinsurance agreements do not discharge the Company’s obligations as the primary insurer. The Company reviews all contractual features, including those that may limit the amount of insurance risk to which the reinsurer is subject or features that delay the timely reimbursement of claims. For reinsurance of existing in-force blocks of long-duration contracts that transfer significant insurance risk, the difference, if any, between the amounts paid, and the liabilities ceded related to the underlying contracts is considered the net cost of reinsurance at the inception of the reinsurance agreement. The net cost of reinsurance is recorded as an adjustment to DAC when there is a gain at inception on the ceding entity and to other liabilities when there is a loss at inception. The net cost of reinsurance is recognized as a component of other expenses when there is a gain at inception and as policyholder benefits and claims when there is a loss and is subsequently amortized on a basis consistent with the methodology used for amortizing DAC related to the underlying reinsured contracts. Subsequent amounts paid on the reinsurance of in-force blocks, as well as amounts paid related to new business, are recorded as ceded premiums and ceded premiums, reinsurance and other receivables are established. Amounts currently recoverable under reinsurance agreements are included in premiums, reinsurance and other receivables and amounts currently payable are included in other liabilities. Assets and liabilities relating to reinsurance agreements with the same reinsurer may be recorded net on the balance sheet, if a right of offset exists within the reinsurance agreement. If reinsurers do not meet their obligations to the Company under the terms of the reinsurance agreements, reinsurance recoverable balances could become uncollectible. In such instances, reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance. The funds withheld liability represents amounts withheld by the Company in accordance with the terms of the reinsurance agreements. Under certain reinsurance agreements, the Company withholds the funds rather than transferring the underlying investments and, as a result, records funds withheld liability within other liabilities. The Company recognizes interest on funds withheld, included in other expenses, at rates defined by the terms of the agreement which may be contractually specified or directly related to the investment portfolio. Premiums, fees and policyholder benefits and claims are net of reinsurance ceded. Amounts received from reinsurers for policy administration are reported in other revenues. With respect to GMIBs, a portion of the directly written GMIBs are accounted for as insurance liabilities, but the reinsured portions of these guarantees are accounted for as embedded derivatives. These embedded derivatives are included in premiums, reinsurance and other receivables with changes in estimated fair value reported in net derivative gains (losses). If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Deposits received are included in other liabilities and deposits made are included within premiums, reinsurance and other receivables. As amounts are paid or received, consistent with the underlying contracts, the deposit assets or liabilities are adjusted. Interest on such deposits is recorded as other revenues or other expenses, as appropriate. Periodically, the Company evaluates the adequacy of the expected payments or recoveries and adjusts the deposit asset or liability through other revenues or other expenses, as appropriate. |
Investments | Investments Net Investment Income and Net Investment Gains (Losses) Income from investments is reported within net investment income, unless otherwise stated herein. Gains and losses on sales of investments, impairment losses and changes in valuation allowances are reported within net investment gains (losses), unless otherwise stated herein. Fixed Maturity Securities The Company’s fixed maturity securities are classified as available-for-sale (“AFS”) and are reported at their estimated fair value. Unrealized investment gains and losses on these securities are recorded as a separate component of other comprehensive income (loss) (“OCI”), net of policy-related amounts and deferred income taxes. All security transactions are recorded on a trade date basis. Investment gains and losses on sales are determined on a specific identification basis. Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect to amortization of premiums and accretion of discounts and is based on the estimated economic life of the securities, which for residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”) and asset-backed securities (“ABS”) (collectively, “Structured Securities”) considers the estimated timing and amount of prepayments of the underlying loans. The amortization of premium and accretion of discount of fixed maturity securities also takes into consideration call and maturity dates. Amortization of premium and accretion of discount on Structured Securities considers the estimated timing and amount of prepayments of the underlying loans. Actual prepayment experience is periodically reviewed and effective yields are recalculated when differences arise between the originally anticipated and the actual prepayments received and currently anticipated. Prepayment assumptions for Structured Securities are estimated using inputs obtained from third-party specialists and based on management’s knowledge of the current market. For credit-sensitive Structured Securities and certain prepayment-sensitive securities, the effective yield is recalculated on a prospective basis. For all other Structured Securities, the effective yield is recalculated on a retrospective basis The Company periodically evaluates fixed maturity securities for impairment. The assessment of whether impairments have occurred is based on management’s case-by-case evaluation of the underlying reasons for the decline in estimated fair value, as well as an analysis of the gross unrealized losses by severity and/or age. See Note 6 “— Evaluation of AFS Securities for OTTI and Evaluating Temporarily Impaired AFS Securities.” For fixed maturity securities in an unrealized loss position, an other-than-temporary impairment (“OTTI”) is recognized in earnings when it is anticipated that the amortized cost will not be recovered. When either: (i) the Company has the intent to sell the security; or (ii) it is more likely than not that the Company will be required to sell the security before recovery, the OTTI recognized in earnings is the entire difference between the security’s amortized cost and estimated fair value. If neither of these conditions exists, the difference between the amortized cost of the security and the present value of projected future cash flows expected to be collected is recognized as an OTTI in earnings (“credit loss”). If the estimated fair value is less than the present value of projected future cash flows expected to be collected, this portion of OTTI related to other-than-credit factors (“noncredit loss”) is recorded in OCI. Mortgage Loans The Company disaggregates its mortgage loan investments into two portfolio segments: commercial and agricultural. The accounting policies that are applicable to both portfolio segments are presented below and the accounting policies related to each of the portfolio segments are included in Note 6 . Mortgage loans are stated at unpaid principal balance, adjusted for any unamortized premium or discount and any deferred fees or expenses, and are net of valuation allowances. Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect to amortization of premiums and accretion of discounts. Other Invested Assets Other invested assets consist of freestanding derivatives with positive estimated fair values which are described in “— Derivatives” below. Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities not due at a single maturity date have been presented in the year of final contractual maturity. Structured Securities are shown separately, as they are not due at a single maturity. Maturities of Fixed Maturity Securities Evaluation and Measurement Methodologies Management considers a wide range of factors about the security issuer and uses its best judgment in evaluating the cause of the decline in the estimated fair value of the security and in assessing the prospects for near-term recovery. Inherent in management’s evaluation of the security are assumptions and estimates about the operations of the issuer and its future earnings potential. Considerations used in the impairment evaluation process include, but are not limited to: (i) the length of time and the extent to which the estimated fair value has been below amortized cost; (ii) the potential for impairments when the issuer is experiencing significant financial difficulties; (iii) the potential for impairments in an entire industry sector or sub-sector; (iv) the potential for impairments in certain economically depressed geographic locations; (v) the potential for impairments where the issuer, series of issuers or industry has suffered a catastrophic loss or has exhausted natural resources; (vi) whether the Company has the intent to sell or will more likely than not be required to sell a particular security before the decline in estimated fair value below amortized cost recovers; (vii) with respect to Structured Securities, changes in forecasted cash flows after considering the quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying assets backing a particular security, and the payment priority within the tranche structure of the security; (viii) the potential for impairments due to weakening of foreign currencies on non-functional currency denominated fixed maturity securities that are near maturity; and (ix) other subjective factors, including concentrations and information obtained from regulators and rating agencies. The Company defines delinquency consistent with industry practice, when mortgage loans are past due as follows: commercial mortgage loans – 60 days and agricultural mortgage loans – 90 days. Valuation Allowance Methodology Mortgage loans are considered to be impaired when it is probable that, based upon current information and events, the Company will be unable to collect all amounts due under the loan agreement. Specific valuation allowances are established using the same methodology for both portfolio segments as the excess carrying value of a loan over either (i) the present value of expected future cash flows discounted at the loan’s original effective interest rate, (ii) the estimated fair value of the loan’s underlying collateral if the loan is in the process of foreclosure or otherwise collateral dependent, or (iii) the loan’s observable market price. A common evaluation framework is used for establishing non-specific valuation allowances for both loan portfolio segments; however, a separate non-specific valuation allowance is calculated and maintained for each loan portfolio segment that is based on inputs unique to each loan portfolio segment. Non-specific valuation allowances are established for pools of loans with similar risk characteristics where a property-specific or market-specific risk has not been identified, but for which the Company expects to incur a credit loss. These evaluations are based upon several loan portfolio segment-specific factors, including the Company’s experience for loan losses, defaults and loss severity, and loss expectations for loans with similar risk characteristics. These evaluations are revised as conditions change and new information becomes available. Past Due, Nonaccrual and Modified Mortgage Loans Variable Interest Entities The Company has invested in certain entities that are VIEs. In certain instances, the Company may hold both the power to direct the most significant activities of the entity, as well as an economic interest in the entity and, as such, it would be deemed the primary beneficiary or consolidator of the entity. The determination of the VIE’s primary beneficiary requires an evaluation of the contractual and implied rights and obligations associated with each party’s relationship with or involvement in the entity, an estimate of the entity’s expected losses and expected residual returns and the allocation of such estimates to each party involved in the entity. |
Derivatives | Derivatives Freestanding Derivatives Freestanding derivatives are carried on the Company’s balance sheet either as assets within other invested assets or as liabilities within other liabilities at estimated fair value. The Company does not offset the estimated fair value amounts recognized for derivatives executed with the same counterparty under the same master netting agreement. Accruals on derivatives are generally recorded in accrued investment income or within other liabilities. However, accruals that are not scheduled to settle within one year are included with the derivatives carrying value in other invested assets or other liabilities. If a derivative is not designated as an accounting hedge or its use in managing risk does not qualify for hedge accounting, changes in the estimated fair value of the derivative are reported in net derivative gains (losses). Hedge Accounting The Company primarily designates derivatives as a hedge of a forecasted transaction or a variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”). When a derivative is designated as a cash flow hedge and is determined to be highly effective, changes in fair value are recorded in OCI and subsequently reclassified into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item. To qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk management objective and strategy for undertaking the hedging transaction, as well as its designation of the hedge. In its hedge documentation, the Company sets forth how the hedging instrument is expected to hedge the designated risks related to the hedged item and sets forth the method that will be used to retrospectively and prospectively assess the hedging instrument’s effectiveness and the method that will be used to measure ineffectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and at least quarterly throughout the life of the designated hedging relationship The Company discontinues hedge accounting prospectively when: (i) it is determined that the derivative is no longer highly effective in offsetting changes in the cash flows of a hedged item; (ii) the derivative expires, is sold, terminated, or exercised; (iii) it is no longer probable that the hedged forecasted transaction will occur; or (iv) the derivative is de-designated as a hedging instrument. When hedge accounting is discontinued because it is determined that the derivative is not highly effective in offsetting changes in the cash flows of a hedged item, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized in net derivative gains (losses). Provided the hedged forecasted transaction is still probable of occurrence, the changes in estimated fair value of derivatives recorded in OCI related to discontinued cash flow hedges are released into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item. In all other situations in which hedge accounting is discontinued, the derivative is carried at its estimated fair value on the balance sheet, with changes in its estimated fair value recognized in the current period as net derivative gains (losses). Embedded Derivatives The Company sells variable annuities and is a party to certain reinsurance agreements that have embedded derivatives. The Company assesses each identified embedded derivative to determine whether it is required to be bifurcated. The embedded derivative is bifurcated from the host contract and accounted for as a freestanding derivative if: • the combined instrument is not accounted for in its entirety at estimated fair value with changes in estimated fair value recorded in earnings; • the terms of the embedded derivative are not clearly and closely related to the economic characteristics of the host contract; and • a separate instrument with the same terms as the embedded derivative would qualify as a derivative instrument. Such embedded derivatives are carried on the balance sheet at estimated fair value with the host contract and changes in their estimated fair value are generally reported in net derivative gains (losses). If the Company is unable to properly identify and measure an embedded derivative for separation from its host contract, the entire contract is carried on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income. Additionally, the Company may elect to carry an entire contract on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income if that contract contains an embedded derivative that requires bifurcation. At inception, the Company attributes to the embedded derivative a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. Any additional fees represent “excess” fees and are reported in universal life and investment-type product policy fees. |
Fair Value | Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. In most cases, the exit price and the transaction (or entry) price will be the same at initial recognition. In determining the estimated fair value of the Company’s investments, fair values are based on unadjusted quoted prices for identical investments in active markets that are readily and regularly obtainable. When such quoted prices are not available, fair values are based on quoted prices in markets that are not active, quoted prices for similar but not identical investments, or other observable inputs. If these inputs are not available, or observable inputs are not determinable, unobservable inputs and/or adjustments to observable inputs requiring management judgment are used to determine the estimated fair value of investments. When developing estimated fair values, the Company considers three broad valuation techniques: (i) the market approach, (ii) the income approach, and (iii) the cost approach. The Company determines the most appropriate valuation technique to use, given what is being measured and the availability of sufficient inputs, giving priority to observable inputs. The Company categorizes its assets and liabilities measured at estimated fair value into a three-level hierarchy, based on the significant input with the lowest level in its valuation. The input levels are as follows: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities. The size of the bid/ask spread is used as an indicator of market activity for fixed maturity securities. Level 2 Quoted prices in markets that are not active or inputs that are observable either directly or indirectly. These inputs can include quoted prices for similar assets or liabilities other than quoted prices in Level 1, quoted prices in markets that are not active, or other significant inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and are significant to the determination of estimated fair value of the assets or liabilities. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability. |
Employee Benefit Plans | Employee Benefit Plans Through December 31, 2016, Metropolitan Life Insurance Company (“MLIC”), a former affiliate, provided and the Company contributed to defined benefit pension and postemployment plans for its employees and retirees. MLIC also provides and the Company contributes to a postretirement medical and life insurance benefit plan for certain retired employees. The Company accounts for these plans as multiemployer benefit plans and as a result the assets, obligations and other comprehensive gains and losses of these benefit plans are not included in the balance sheet. Within its statement of operations, the Company has included expense associated with its participants in these plans. These plans also include participants from other affiliates of MLIC. The Company’s participation in these plans ceased December 31, 2016. |
Income Tax | Income Tax Income taxes as presented herein attribute current and deferred income taxes of MetLife, Inc., for periods up until the Separation, to Brighthouse Financial, Inc. and its subsidiaries in a manner that is systematic, rational and consistent with the asset and liability method prescribed by the Financial Accounting Standards Board (“FASB”) guidance Accounting Standards Codification 740 - Income Taxes (“ASC 740”). The Company’s income tax provision was prepared following the modified separate return method. The modified separate return method applies ASC 740 to the standalone financial statements of each member of the consolidated group as if the group member were a separate taxpayer and a standalone enterprise, after providing benefits for losses. The Company’s accounting for income taxes represents management’s best estimate of various events and transactions. Deferred tax assets and liabilities resulting from temporary differences between the financial reporting and tax bases of assets and liabilities are measured at the balance sheet date using enacted tax rates expected to apply to taxable income in the years the temporary differences are expected to reverse. The realization of deferred tax assets depends upon the existence of sufficient taxable income within the carryback or carryforward periods under the tax law in the applicable tax jurisdiction. Valuation allowances are established when management determines, based on available information, that it is more likely than not that deferred income tax assets will not be realized. Significant judgment is required in determining whether valuation allowances should be established, as well as the amount of such allowances. When making such determination, the Company considers many factors, including: • the nature, frequency, and amount of cumulative financial reporting income and losses in recent years; • the jurisdiction in which the deferred tax asset was generated; • the length of time that carryforward can be utilized in the various taxing jurisdiction; • future taxable income exclusive of reversing temporary differences and carryforwards; • future reversals of existing taxable temporary differences; • taxable income in prior carryback years; and • tax planning strategies. The Company may be required to change its provision for income taxes when estimates used in determining valuation allowances on deferred tax assets significantly change or when receipt of new information indicates the need for adjustment in valuation allowances. Additionally, the effect of changes in tax laws, tax regulations, or interpretations of such laws or regulations, is recognized in net income tax expense (benefit) in the period of change. The Company determines whether it is more likely than not that a tax position will be sustained upon examination by the appropriate taxing authorities before any part of the benefit can be recorded on the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement. Unrecognized tax benefits due to tax uncertainties that do not meet the threshold are included within other liabilities and are charged to earnings in the period that such determination is made. The Company classifies interest recognized as interest expense and penalties recognized as a component of income tax expense. On December 22, 2017, President Trump signed the Tax Cuts and Jobs Act (“the Tax Act”) into law. The Tax Act reduced the corporate tax rate to 21%, reduced interest expense deductibility, increased capitalization amounts for deferred acquisition costs, eliminated the corporate alternative minimum tax, provided for determining reserve deductions as 92.81% of statutory reserves, and reduced the dividend received deduction. Most of the changes in the Tax Act are effective as of January 1, 2018. The reduction in the corporate rate required a one-time remeasurement of certain deferred tax items as of December 31, 2017. For the estimated impact of the Tax Act on the financial statements, including the estimated impact resulting from the remeasurement of deferred tax assets and liabilities, see Note 13 for more information. Actual results may materially differ from the Company’s current estimate due to, among other things, further guidance that may be issued by U.S. tax authorities or regulatory bodies and/or changes in interpretations and assumptions preliminarily made. The Company will continue to analyze the Tax Act to finalize its financial statement impact. In December 2017, the SEC issued Staff Accounting Bulletin (“SAB”) 118, addressing the application of GAAP in situations when a registrant does not have necessary information available to complete the accounting for certain income tax effects of the Tax Act. SAB 118 provides guidance for registrants under three scenarios: (1) the measurement of certain income tax effects is complete, (2) the measurement of certain income tax effects can be reasonably estimated, and (3) the measurement of certain income tax effects cannot be reasonably estimated. SAB 118 provides that the measurement period is complete when a company’s accounting is complete. The measurement period cannot extend beyond one year from the enactment date. SAB 118 acknowledges that a company may be able to complete the accounting for some provisions earlier than others. As such, it may need to apply all three scenarios in determining the accounting for the Tax Act based on information that is available. The Company has not fully completed its accounting for the tax effects of the Tax Act, including accounting for reserves. However, it has recorded the effects of the Tax Act as reasonable estimates due to the need for further analysis of the provisions within the Tax Act and collection, preparation and analysis of relevant data necessary to complete the accounting. The corporate rate reduction also left certain tax effects, which were originally recorded using the previous corporate rate, stranded in accumulated other comprehensive income (“AOCI”). The Company adopted new accounting guidance as of December 31, 2017 that allowed the Company to reclassify the stranded tax effects from AOCI into retained earnings. The Company elected to reclassify amounts based on the difference between the previously enacted federal corporate tax rate and the newly enacted rate as applied on an aggregate basis. See Note 11 for more information. |
Litigation Contingencies | Litigation Contingencies The Company may be a party to legal actions or regulatory investigations. Given the inherent unpredictability of these matters, it is difficult to estimate the impact, if any, on the Company’s financial position. Liabilities are established when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Legal costs are recognized as incurred. On a quarterly and annual basis, the Company reviews relevant information with respect to liabilities for litigation, regulatory investigations and litigation-related contingencies to be reflected on the Company’s financial statements. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid securities and other investments purchased with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. Cash equivalents are stated at amortized cost, which approximates estimated fair value. |
Computer Software | Computer Software Computer software, which is included in other assets, is stated at cost, less accumulated amortization. Purchased software costs, as well as certain internal and external costs incurred to develop internal-use computer software during the application development stage, are capitalized. Such costs are amortized generally over a four -year period using the straight-line method. The cost basis of computer software was $0 and $12.4 million at December 31, 2017 and 2016 , respectively. Accumulated amortization of capitalized software was $0 and $5.9 million at December 31, 2017 and 2016 , respectively. Related amortization expense was $544 thousand , $2.2 million and $13 thousand for the years ended December 31, 2017 , 2016 and 2015 , respectively. |
New Accounting Pronouncements, Policy [Policy Text Block] | Adoption of New Accounting Pronouncements Changes to GAAP are established by the FASB in the form of accounting standards updates (“ASU”) to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or are not expected to have a material impact on the Company’s financial statements. The following table provides a description of new ASUs issued by the FASB and the expected impact of the adoption on the financial statements. Except as noted below, the ASUs adopted by the Company during 2017 did not have a material impact on its financial statements. Standard Description Effective Date Impact on Financial Statements ASU 2018-02, Reporting Comprehensive Income (Topic 220)-Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income The amendments to Topic 220 provide an option to reclassify stranded tax effects within AOCI to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act of 2017 (or portion thereof) is recorded. January 1, 2019 applied in the period of adoption (with early adoption permitted) The Company elected to early adopt the ASU as of December 31, 2017 and reclassified $5.3 million from AOCI into retained earnings related to the impact of the Tax Act of 2017. See Notes 9 and 11. ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities The amendments to Topic 815 (i) refine and expand the criteria for achieving hedge accounting on certain hedging strategies, (ii) require the earnings effect of the hedging instrument be presented in the same line item in which the earnings effect of the hedged item is reported, and (iii) eliminate the requirement to separately measure and report hedge ineffectiveness. January 1, 2019 using the modified retrospective method (with early adoption permitted) The Company does not expect a material impact on the Company's financial statements from adoption of the new guidance. ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The amendments to Topic 326 replace the incurred loss impairment methodology for certain financial instruments with one that reflects expected credit losses based on historical loss information, current conditions, and reasonable and supportable forecasts. The new guidance also requires that an other-than-temporary impairment (“OTTI”) on a debt security will be recognized as an allowance going forward, such that improvements in expected future cash flows after an impairment will no longer be reflected as a prospective yield adjustment through net investment income, but rather a reversal of the previous impairment and recognized through realized investment gains and losses. January 1, 2020 using the modified retrospective method (with early adoption permitted beginning January 1, 2019) The Company is currently evaluating the impact of this guidance on its financial statements. We expect the most significant impacts to be earlier recognition of impairments on mortgage loan investments. ASU 2014-09 Revenue from Contracts with Customers (Topic 606) For those contracts that are impacted, the guidance will require an entity to recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled, in exchange for those goods or services. January 1, 2018 using the retrospective method No impact on the Company’s financial statements. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting Information, by Segment | Operating Results Year Ended December 31, 2017 Annuities Life Corporate Total (In thousands) Pre-tax adjusted earnings $ 65,637 $ 2,692 $ 6,824 $ 75,153 Provision for income tax expense (benefit) 16,104 1,533 (74,929 ) (57,292 ) Adjusted earnings $ 49,533 $ 1,159 $ 81,753 132,445 Adjustments for: Net investment gains (losses) (1,178 ) Net derivative gains (losses) (157,222 ) Other adjustments to net income 34,307 Provision for income tax (expense) benefit 43,433 Net income (loss) $ 51,785 Interest revenue $ 57,142 $ 19,078 $ 10,433 At December 31, 2017 Annuities Life Corporate & Other Total (In thousands) Total assets $ 7,219,139 $ 662,546 $ 604,620 $ 8,486,305 Separate account assets $ 5,021,633 $ — $ — $ 5,021,633 Separate account liabilities $ 5,021,633 $ — $ — $ 5,021,633 Operating Results Year Ended December 31, 2016 Annuities Life Corporate Total (In thousands) Pre-tax adjusted earnings $ 52,855 $ 40,561 $ 9,665 $ 103,081 Provision for income tax expense (benefit) 14,623 14,197 3,014 31,834 Adjusted earnings $ 38,232 $ 26,364 $ 6,651 $ 71,247 Adjustments for: Net investment gains (losses) (3,737 ) Net derivative gains (losses) 67,726 Other adjustments to net income (34,508 ) Provision for income tax (expense) benefit (10,318 ) Net income (loss) $ 90,410 Interest revenue $ 27,747 $ 17,108 $ 13,204 At December 31, 2016 Annuities Life Corporate Total (In thousands) Total assets $ 6,708,803 $ 342,592 $ 581,651 $ 7,633,046 Separate account assets $ 4,758,449 $ — $ — $ 4,758,449 Separate account liabilities $ 4,758,449 $ — $ — $ 4,758,449 Operating Results Year Ended December 31, 2015 Annuities Life Corporate Total (In thousands) Pre-tax adjusted earnings $ 20,794 (60,934 ) $ 11,842 $ (28,298 ) Provision for income tax expense (benefit) 1,139 (21,327 ) 3,493 (16,695 ) Adjusted earnings $ 19,655 $ (39,607 ) $ 8,349 $ (11,603 ) Adjustments for: Net investment gains (losses) 4,399 Net derivative gains (losses) 65,000 Other adjustments to net income (16,018 ) Provision for income tax (expense) benefit (18,683 ) Net income (loss) $ 23,095 Interest revenue $ 23,210 $ 15,432 $ 14,516 |
Premiums, Universal Life and Investment-Type Policy Fees and Other Revenue by Product Groups for Reportable Segment | The following table presents total premiums, universal life and investment-type product policy fees and other revenues by major product groups of the Company’s segments, as well as Corporate & Other: Years Ended December 31, 2017 2016 2015 (In thousands) Annuity products $ 63,813 $ 112,018 $ 130,167 Life insurance products 19,925 70,913 43,145 Total $ 83,738 $ 182,931 $ 173,312 |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | The following table presents total revenues with respect to the Company’s segments, as well as Corporate & Other: Years Ended December 31, 2017 2016 2015 (In thousands) Annuities $ 106,762 $ 125,308 $ 139,102 Life 36,646 86,089 56,322 Corporate & Other 12,789 15,135 16,771 Adjustments (144,532 ) 78,168 83,460 Total $ 11,665 $ 304,700 $ 295,655 |
Insurance (Tables)
Insurance (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Insurance Liabilities | Information regarding insurance liabilities by segment, as well as Corporate & Other, was as follows at: December 31, 2017 2016 (In thousands) Annuities $ 1,675,039 $ 1,504,773 Life 346,084 322,319 Corporate & Other 8,986 9,550 Total $ 2,030,109 $ 1,836,642 |
Liabilities for Guarantees | Information regarding the liabilities for guarantees (excluding base policy liabilities and embedded derivatives) relating to annuity contracts was as follows: Annuity Contracts GMDBs GMIBs Total (In thousands) Direct Balance at January 1, 2015 $ 7,152 $ 96,726 $ 103,878 Incurred guaranteed benefits 1,175 20,004 21,179 Paid guaranteed benefits (238 ) — (238 ) Balance at December 31, 2015 8,089 116,730 124,819 Incurred guaranteed benefits 2,272 32,338 34,610 Paid guaranteed benefits (560 ) 1 (559 ) Balance at December 31, 2016 9,801 149,069 158,870 Incurred guaranteed benefits 2,675 22,559 25,234 Paid guaranteed benefits (11 ) — (11 ) Balance at December 31, 2017 $ 12,465 $ 171,628 $ 184,093 Ceded Balance at January 1, 2015 $ 7,152 $ 32,487 $ 39,639 Incurred guaranteed benefits 1,664 7,433 9,097 Paid guaranteed benefits (238 ) — (238 ) Balance at December 31, 2015 8,578 39,920 48,498 Incurred guaranteed benefits 2,215 11,570 13,785 Paid guaranteed benefits (560 ) — (560 ) Balance at December 31, 2016 10,233 51,490 61,723 Incurred guaranteed benefits 2,547 9,386 11,933 Paid guaranteed benefits (11 ) — (11 ) Balance at December 31, 2017 $ 12,769 $ 60,876 $ 73,645 Net Balance at January 1, 2015 $ — $ 64,239 $ 64,239 Incurred guaranteed benefits (489 ) 12,571 12,082 Paid guaranteed benefits — — — Balance at December 31, 2015 (489 ) 76,810 76,321 Incurred guaranteed benefits 57 20,768 20,825 Paid guaranteed benefits — 1 1 Balance at December 31, 2016 (432 ) 97,579 97,147 Incurred guaranteed benefits 128 13,173 13,301 Paid guaranteed benefits — — — Balance at December 31, 2017 $ (304 ) $ 110,752 $ 110,448 |
Guarantees Related to Annuity, Universal and Variable Life Contracts | Information regarding the Company’s guarantee exposure was as follows at: December 31, 2017 2016 In the Event of Death At Annuitization In the Event of Death At Annuitization (Dollars in thousands) Annuity Contracts (1), (2) Variable Annuity Guarantees Total account value (3) $ 5,026,927 $ 4,149,482 $ 4,763,943 $ 3,969,485 Separate account value $ 5,020,107 $ 4,149,482 $ 4,753,638 $ 3,968,482 Net amount at risk $ 5,262 (4) $ 166,788 (5) $ 36,827 (4) $ 209,926 (5) Average attained age of contract holders 66 years 66 years 66 years 65 years ______________ (1) The Company’s annuity contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive. (2) Includes direct business, but excludes offsets from hedging or reinsurance, if any. Therefore, the net amount at risk presented reflects the economic exposures of living and death benefit guarantees associated with variable annuities, but not necessarily their impact on the Company. See Note 7 for a discussion of guaranteed minimum benefits which have been reinsured. (3) Includes the contract holder’s investments in the general account and separate account, if applicable. (4) Defined as the death benefit less the total account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date and includes any additional contractual claims associated with riders purchased to assist with covering income taxes payable upon death. (5) Defined as the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company’s potential economic exposure to such guarantees in the event all contract holders were to annuitize on the balance sheet date, even though the contracts contain terms that allow annuitization of the guaranteed amount only after the 10th anniversary of the contract, which not all contract holders have achieved. |
Fund Groupings | Account balances of contracts with guarantees were invested in separate account asset classes as follows at: December 31, 2017 2016 (In thousands) Fund Groupings: Balanced $ 3,099,888 $ 2,945,952 Equity 1,513,408 1,403,276 Bond 359,929 359,993 Money Market 48,408 49,228 Total $ 5,021,633 $ 4,758,449 |
Schedule of Liability Recorded and Collateral Pledged for Funding Agreements | Invested assets on deposit and pledged as collateral are presented below at estimated fair value at: December 31, 2017 2016 (In thousands) Invested assets on deposit (regulatory deposits) $ 1,549 $ 1,507 Invested assets pledged as collateral (1) $ 707 $ — Total invested assets on deposit and pledged as collateral $ 2,256 $ 1,507 __________________ (1) The Company has pledged invested assets in connection with derivative transactions (see Note 7 ). |
Deferred Policy Acquisition C27
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net [Abstract] | |
Schedule of Deferred Policy Acquisition Costs and Value of Business Acquired | Information regarding DAC and VOBA was as follows: Years Ended December 31, 2017 2016 2015 (In thousands) DAC Balance at January 1, $ 85,032 $ 107,474 $ 204,321 Capitalizations 17,089 4,976 4,768 Amortization related to: Net investment gains (losses) and net derivative gains (losses) 50,228 (12,163 ) (16,372 ) Other expenses (10,182 ) (11,155 ) (87,443 ) Total amortization 40,046 (23,318 ) (103,815 ) Unrealized investment gains (losses) (11,200 ) (4,100 ) 2,200 Balance at December 31, 130,967 85,032 107,474 VOBA Balance at January 1, 141 40 51 Amortization related to: Net investment gains (losses) and net derivative gains (losses) — — 5 Other expenses (49 ) 101 (16 ) Total amortization (49 ) 101 (11 ) Balance at December 31, 92 141 40 Total DAC and VOBA Balance at December 31, $ 131,059 $ 85,173 $ 107,514 |
Deferred Policy Acquisition Costs [Table Text Block] | Information regarding DAC and VOBA was as follows: Years Ended December 31, 2017 2016 2015 (In thousands) DAC Balance at January 1, $ 85,032 $ 107,474 $ 204,321 Capitalizations 17,089 4,976 4,768 Amortization related to: Net investment gains (losses) and net derivative gains (losses) 50,228 (12,163 ) (16,372 ) Other expenses (10,182 ) (11,155 ) (87,443 ) Total amortization 40,046 (23,318 ) (103,815 ) Unrealized investment gains (losses) (11,200 ) (4,100 ) 2,200 Balance at December 31, 130,967 85,032 107,474 VOBA Balance at January 1, 141 40 51 Amortization related to: Net investment gains (losses) and net derivative gains (losses) — — 5 Other expenses (49 ) 101 (16 ) Total amortization (49 ) 101 (11 ) Balance at December 31, 92 141 40 Total DAC and VOBA Balance at December 31, $ 131,059 $ 85,173 $ 107,514 |
Information Regarding Deferred Policy Acquisition Costs and Value of Business Acquired by Segment | Information regarding total DAC and VOBA by segment, as well as Corporate & Other, was as follows at: December 31, 2017 2016 (In thousands) Annuities $ 107,760 $ 60,689 Life 23,101 24,265 Corporate & Other 198 219 Total $ 131,059 $ 85,173 |
Deferred Sales Inducements | Information regarding other intangibles was as follows: Years Ended December 31, 2017 2016 2015 (In thousands) DSI Balance at January 1, $ 29,647 $ 37,114 $ 41,176 Capitalization 155 350 452 Amortization (479 ) (7,017 ) (5,014 ) Unrealized investment gains (losses) (2,400 ) (800 ) 500 Balance at December 31, $ 26,923 $ 29,647 $ 37,114 VODA Balance at January 1, $ 9,862 $ 11,222 $ 12,616 Amortization (1,283 ) (1,360 ) (1,394 ) Balance at December 31, $ 8,579 $ 9,862 $ 11,222 Accumulated amortization $ 10,935 $ 9,652 $ 8,292 |
Value of Distribution Agreements and Customer Relationships Acquired | Information regarding other intangibles was as follows: Years Ended December 31, 2017 2016 2015 (In thousands) DSI Balance at January 1, $ 29,647 $ 37,114 $ 41,176 Capitalization 155 350 452 Amortization (479 ) (7,017 ) (5,014 ) Unrealized investment gains (losses) (2,400 ) (800 ) 500 Balance at December 31, $ 26,923 $ 29,647 $ 37,114 VODA Balance at January 1, $ 9,862 $ 11,222 $ 12,616 Amortization (1,283 ) (1,360 ) (1,394 ) Balance at December 31, $ 8,579 $ 9,862 $ 11,222 Accumulated amortization $ 10,935 $ 9,652 $ 8,292 |
Estimated Future Amortization Expense | The estimated future amortization expense to be reported in other expenses for the next five years is as follows: VOBA VODA (In thousands) 2018 $ 46 $ 1,184 2019 $ 46 $ 1,073 2020 $ — $ 956 2021 $ — $ 841 2022 $ — $ 730 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Reinsurance Disclosure [Line Items] | |
Effects of Reinsurance [Table Text Block] | The amounts on the statements of operations include the impact of reinsurance. Information regarding the significant effects of reinsurance was as follows: Years Ended December 31, 2017 2016 2015 (In thousands) Premiums Direct premiums $ 93,196 $ 109,733 $ 122,110 Reinsurance ceded (66,928 ) (58,994 ) (50,238 ) Net premiums $ 26,268 $ 50,739 $ 71,872 Universal life and investment-type product policy fees Direct universal life and investment-type product policy fees $ 107,605 $ 106,830 $ 114,850 Reinsurance ceded (3,869 ) (3,830 ) (3,945 ) Net universal life and investment-type product policy fees $ 103,736 $ 103,000 $ 110,905 Other revenues Direct other revenues $ 13,016 $ 12,494 $ 12,754 Reinsurance ceded (59,282 ) 16,698 (22,219 ) Net other revenues $ (46,266 ) $ 29,192 $ (9,465 ) Policyholder benefits and claims Direct policyholder benefits and claims $ 105,551 $ 128,420 $ 138,574 Reinsurance ceded (110,325 ) (76,440 ) (89,174 ) Net policyholder benefits and claims $ (4,774 ) $ 51,980 $ 49,400 The amounts on the balance sheets include the impact of reinsurance. Information regarding the significant effects of reinsurance was as follows at: December 31, 2017 2016 Direct Ceded Total Direct Ceded Total (In thousands) Assets Premiums, reinsurance and other receivables $ 20,852 $ 551,757 $ 572,609 $ 19,005 $ 335,934 $ 354,939 Liabilities Other policy-related balances $ 12,733 $ — $ 12,733 $ 7,285 $ — $ 7,285 Other liabilities $ 21,643 $ 449,487 $ 471,130 $ 10,637 $ 101,804 $ 112,441 |
Affiliated Entity [Member] | |
Reinsurance Disclosure [Line Items] | |
Effects of Reinsurance [Table Text Block] | Information regarding the significant effects of related party reinsurance included on the statements of operations was as follows: Years Ended December 31, 2017 2016 2015 (In thousands) Premiums Reinsurance ceded $ (51,944 ) $ (44,259 ) $ (37,119 ) Universal life and investment-type product policy fees Reinsurance ceded $ (3,680 ) $ (3,645 ) $ (3,784 ) Other revenues Reinsurance ceded $ (59,272 ) $ 16,701 $ (22,212 ) Policyholder benefits and claims Reinsurance ceded $ (99,990 ) $ (71,948 ) $ (76,410 ) Information regarding the significant effects of ceded related party reinsurance included on the balance sheets was as follows at: December 31, 2017 2016 (In thousands) Assets Premiums, reinsurance and other receivables $ 533,388 $ 321,868 Liabilities Other liabilities $ 448,210 $ 99,641 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Fixed Maturity and Equity Securities Available-for-Sale | The following table presents the fixed maturity securities AFS by sector. December 31, 2017 December 31, 2016 Amortized Gross Unrealized Estimated Amortized Gross Unrealized Estimated Gains Temporary OTTI Gains Temporary OTTI Losses (In thousands) Fixed maturity securities: (1) U.S. corporate $ 770,385 $ 29,246 $ 2,007 $ — $ 797,624 $ 709,694 $ 20,400 $ 8,283 $ — $ 721,811 U.S. government and agency 535,757 17,023 5,717 — 547,063 410,504 9,560 13,519 — 406,545 Foreign corporate 304,650 8,168 3,704 — 309,114 237,412 2,998 8,070 — 232,340 RMBS 217,857 5,626 1,703 — 221,780 238,676 2,033 2,322 — 238,387 CMBS 197,931 3,533 1,043 — 200,421 177,719 2,724 1,487 — 178,956 State and political subdivision 64,056 6,596 366 — 70,286 52,739 4,345 764 — 56,320 ABS 58,665 305 98 — 58,872 26,695 152 177 — 26,670 Foreign government 15,833 597 27 — 16,403 17,215 543 273 — 17,485 Total fixed maturity securities $ 2,165,134 $ 71,094 $ 14,665 $ — $ 2,221,563 $ 1,870,654 $ 42,755 $ 34,895 $ — $ 1,878,514 __________________ (1) Redeemable preferred stock is reported within U.S. corporate fixed maturity securities. Included within fixed maturity securities are Structured Securities. |
Investment, Policy [Policy Text Block] | Investments Net Investment Income and Net Investment Gains (Losses) Income from investments is reported within net investment income, unless otherwise stated herein. Gains and losses on sales of investments, impairment losses and changes in valuation allowances are reported within net investment gains (losses), unless otherwise stated herein. Fixed Maturity Securities The Company’s fixed maturity securities are classified as available-for-sale (“AFS”) and are reported at their estimated fair value. Unrealized investment gains and losses on these securities are recorded as a separate component of other comprehensive income (loss) (“OCI”), net of policy-related amounts and deferred income taxes. All security transactions are recorded on a trade date basis. Investment gains and losses on sales are determined on a specific identification basis. Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect to amortization of premiums and accretion of discounts and is based on the estimated economic life of the securities, which for residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”) and asset-backed securities (“ABS”) (collectively, “Structured Securities”) considers the estimated timing and amount of prepayments of the underlying loans. The amortization of premium and accretion of discount of fixed maturity securities also takes into consideration call and maturity dates. Amortization of premium and accretion of discount on Structured Securities considers the estimated timing and amount of prepayments of the underlying loans. Actual prepayment experience is periodically reviewed and effective yields are recalculated when differences arise between the originally anticipated and the actual prepayments received and currently anticipated. Prepayment assumptions for Structured Securities are estimated using inputs obtained from third-party specialists and based on management’s knowledge of the current market. For credit-sensitive Structured Securities and certain prepayment-sensitive securities, the effective yield is recalculated on a prospective basis. For all other Structured Securities, the effective yield is recalculated on a retrospective basis The Company periodically evaluates fixed maturity securities for impairment. The assessment of whether impairments have occurred is based on management’s case-by-case evaluation of the underlying reasons for the decline in estimated fair value, as well as an analysis of the gross unrealized losses by severity and/or age. See Note 6 “— Evaluation of AFS Securities for OTTI and Evaluating Temporarily Impaired AFS Securities.” For fixed maturity securities in an unrealized loss position, an other-than-temporary impairment (“OTTI”) is recognized in earnings when it is anticipated that the amortized cost will not be recovered. When either: (i) the Company has the intent to sell the security; or (ii) it is more likely than not that the Company will be required to sell the security before recovery, the OTTI recognized in earnings is the entire difference between the security’s amortized cost and estimated fair value. If neither of these conditions exists, the difference between the amortized cost of the security and the present value of projected future cash flows expected to be collected is recognized as an OTTI in earnings (“credit loss”). If the estimated fair value is less than the present value of projected future cash flows expected to be collected, this portion of OTTI related to other-than-credit factors (“noncredit loss”) is recorded in OCI. Mortgage Loans The Company disaggregates its mortgage loan investments into two portfolio segments: commercial and agricultural. The accounting policies that are applicable to both portfolio segments are presented below and the accounting policies related to each of the portfolio segments are included in Note 6 . Mortgage loans are stated at unpaid principal balance, adjusted for any unamortized premium or discount and any deferred fees or expenses, and are net of valuation allowances. Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect to amortization of premiums and accretion of discounts. Other Invested Assets Other invested assets consist of freestanding derivatives with positive estimated fair values which are described in “— Derivatives” below. Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities not due at a single maturity date have been presented in the year of final contractual maturity. Structured Securities are shown separately, as they are not due at a single maturity. Maturities of Fixed Maturity Securities Evaluation and Measurement Methodologies Management considers a wide range of factors about the security issuer and uses its best judgment in evaluating the cause of the decline in the estimated fair value of the security and in assessing the prospects for near-term recovery. Inherent in management’s evaluation of the security are assumptions and estimates about the operations of the issuer and its future earnings potential. Considerations used in the impairment evaluation process include, but are not limited to: (i) the length of time and the extent to which the estimated fair value has been below amortized cost; (ii) the potential for impairments when the issuer is experiencing significant financial difficulties; (iii) the potential for impairments in an entire industry sector or sub-sector; (iv) the potential for impairments in certain economically depressed geographic locations; (v) the potential for impairments where the issuer, series of issuers or industry has suffered a catastrophic loss or has exhausted natural resources; (vi) whether the Company has the intent to sell or will more likely than not be required to sell a particular security before the decline in estimated fair value below amortized cost recovers; (vii) with respect to Structured Securities, changes in forecasted cash flows after considering the quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying assets backing a particular security, and the payment priority within the tranche structure of the security; (viii) the potential for impairments due to weakening of foreign currencies on non-functional currency denominated fixed maturity securities that are near maturity; and (ix) other subjective factors, including concentrations and information obtained from regulators and rating agencies. The Company defines delinquency consistent with industry practice, when mortgage loans are past due as follows: commercial mortgage loans – 60 days and agricultural mortgage loans – 90 days. Valuation Allowance Methodology Mortgage loans are considered to be impaired when it is probable that, based upon current information and events, the Company will be unable to collect all amounts due under the loan agreement. Specific valuation allowances are established using the same methodology for both portfolio segments as the excess carrying value of a loan over either (i) the present value of expected future cash flows discounted at the loan’s original effective interest rate, (ii) the estimated fair value of the loan’s underlying collateral if the loan is in the process of foreclosure or otherwise collateral dependent, or (iii) the loan’s observable market price. A common evaluation framework is used for establishing non-specific valuation allowances for both loan portfolio segments; however, a separate non-specific valuation allowance is calculated and maintained for each loan portfolio segment that is based on inputs unique to each loan portfolio segment. Non-specific valuation allowances are established for pools of loans with similar risk characteristics where a property-specific or market-specific risk has not been identified, but for which the Company expects to incur a credit loss. These evaluations are based upon several loan portfolio segment-specific factors, including the Company’s experience for loan losses, defaults and loss severity, and loss expectations for loans with similar risk characteristics. These evaluations are revised as conditions change and new information becomes available. Past Due, Nonaccrual and Modified Mortgage Loans Variable Interest Entities The Company has invested in certain entities that are VIEs. In certain instances, the Company may hold both the power to direct the most significant activities of the entity, as well as an economic interest in the entity and, as such, it would be deemed the primary beneficiary or consolidator of the entity. The determination of the VIE’s primary beneficiary requires an evaluation of the contractual and implied rights and obligations associated with each party’s relationship with or involvement in the entity, an estimate of the entity’s expected losses and expected residual returns and the allocation of such estimates to each party involved in the entity. |
Available-for-sale fixed maturity securities by contractual maturity date | The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at December 31, 2017 : Due in One Year or Less Due After One Year Through Five Years Due After Five Years Through Ten Years Due After Ten Years Structured Securities Total Fixed Maturity Securities (In thousands) Amortized cost $ 40,231 $ 333,428 $ 760,665 $ 556,357 $ 474,453 $ 2,165,134 Estimated fair value $ 40,633 $ 338,857 $ 768,084 $ 592,916 $ 481,073 $ 2,221,563 |
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | The following table presents the estimated fair value and gross unrealized losses of fixed maturity securities AFS in an unrealized loss position, aggregated by sector and by length of time that the securities have been in a continuous unrealized loss position. December 31, 2017 December 31, 2016 Less than 12 Months Equal to or Greater Less than 12 Months Equal to or Greater Estimated Gross Estimated Gross Estimated Gross Estimated Gross (Dollars in thousands) Fixed maturity securities U.S. corporate $ 118,514 $ 898 $ 46,372 $ 1,109 $ 250,559 $ 6,667 $ 17,745 $ 1,616 U.S. government and agency 248,434 2,895 107,253 2,822 342,150 13,519 — — Foreign corporate 88,724 1,540 29,552 2,164 129,093 3,541 22,965 4,529 RMBS 24,060 162 38,454 1,541 137,470 2,089 6,822 233 CMBS 18,430 176 27,958 867 42,661 1,068 3,729 419 State and political subdivision 9,232 110 8,111 256 20,709 764 — — ABS 7,361 23 8,076 75 17,504 177 — — Foreign government 4,484 27 — — 7,189 148 868 125 Total fixed maturity securities $ 519,239 $ 5,831 $ 265,776 $ 8,834 $ 947,335 $ 27,973 $ 52,129 $ 6,922 Total number of securities in an unrealized loss position 131 58 203 35 |
Disclosure of Mortgage Loans Net of Valuation Allowance | Mortgage loans are summarized as follows at: December 31, 2017 2016 Carrying % of Carrying % of (Dollars in thousands) Mortgage loans: Commercial $ 276,626 70.0 % $ 286,002 70.4 % Agricultural 119,984 30.4 121,858 30.0 Subtotal (1) 396,610 100.4 407,860 100.4 Valuation allowances (2) (1,747 ) (0.4 ) (1,775 ) (0.4 ) Total mortgage loans, net $ 394,863 100.0 % $ 406,085 100.0 % __________________ (1) The Company purchases unaffiliated mortgage loans under a master participation agreement from a former affiliate, simultaneously with the former affiliate’s origination or acquisition of mortgage loans. The aggregate amount of unaffiliated mortgage loan participation interests purchased by the Company from the former affiliate during the years ended December 31, 2017 , 2016 and 2015 were $22.2 million , $100.2 million and $44.9 million , respectively. In connection with the mortgage loan participations, the former affiliate collected mortgage loan principal and interest payments on the Company’s behalf and the former affiliate remitted such payments to the Company in the amount of $58.5 million , $63.7 million and $30.3 million during the years ended December 31, 2017 , 2016 and 2015 , respectively. (2) The valuation allowances were primarily from collective evaluation (non-specific loan related). |
Components of net unrealized investment gains (losses) included in accumulated other comprehensive income (loss) | The components of net unrealized investment gains (losses), included in AOCI, were as follows: Years Ended December 31, 2017 2016 2015 (In thousands) Fixed maturity securities $ 56,432 $ 7,862 $ 6,028 Derivatives 471 4,718 3,189 Subtotal 56,903 12,580 9,217 Amounts allocated from: DAC and DSI (19,400 ) (5,800 ) (900 ) Deferred income tax benefit (expense) (7,875 ) (2,373 ) (2,911 ) Net unrealized investment gains (losses) $ 29,628 $ 4,407 $ 5,406 The changes in net unrealized investment gains (losses) were as follows: Years Ended December 31, 2017 2016 2015 (In thousands) Balance at January 1, $ 4,407 $ 5,406 $ 39,591 Unrealized investment gains (losses) during the year 44,323 3,363 (55,293 ) Unrealized investment gains (losses) relating to: DAC and DSI (13,600 ) (4,900 ) 2,700 Deferred income tax benefit (expense) (5,502 ) 538 18,408 Balance at December 31, $ 29,628 $ 4,407 $ 5,406 Change in net unrealized investment gains (losses) $ 25,221 $ (999 ) $ (34,185 ) |
Invested Assets on Deposit, Held in Trust and Pledged as Collateral | Invested assets on deposit and pledged as collateral are presented below at estimated fair value at: December 31, 2017 2016 (In thousands) Invested assets on deposit (regulatory deposits) $ 1,549 $ 1,507 Invested assets pledged as collateral (1) $ 707 $ — Total invested assets on deposit and pledged as collateral $ 2,256 $ 1,507 __________________ (1) The Company has pledged invested assets in connection with derivative transactions (see Note 7 ). |
The Components of Net Investment Income | The components of net investment income were as follows: Years Ended December 31, 2017 2016 2015 (In thousands) Investment income: Fixed maturity securities $ 71,779 $ 50,386 $ 47,069 Mortgage loans 16,665 8,734 6,904 Cash, cash equivalents and short-term investments 261 102 38 Other 778 516 401 Subtotal 89,483 59,738 54,412 Less: Investment expenses 3,156 1,958 1,468 Net investment income $ 86,327 $ 57,780 $ 52,944 |
The components of net investment gains (losses) | The components of net investment gains (losses) were as follows: Years Ended December 31, 2017 2016 2015 (In thousands) Total gains (losses) on fixed maturity securities: Total OTTI losses recognized: U.S. and foreign corporate securities — by industry: Industrial $ — $ (870 ) $ — OTTI losses on fixed maturity securities recognized in earnings — (870 ) — Fixed maturity securities — net gains (losses) on sales and disposals (1,749 ) (1,884 ) 4,547 Total gains (losses) on fixed maturity securities (1,749 ) (2,754 ) 4,547 Equity securities - net gains (losses) on sales and disposals — 6 — Mortgage loans (42 ) (1,129 ) (146 ) Other 613 140 (2 ) Total net investment gains (losses) $ (1,178 ) $ (3,737 ) $ 4,399 |
Proceeds from sales or disposals of fixed maturity and equity securities and the components of fixed maturity and equity securities net investment gains and losses | Proceeds from sales or disposals of fixed maturity securities and the components of fixed maturity securities net investment gains (losses) were as shown in the table below. Years Ended December 31, 2017 2016 2015 2017 2016 2015 Fixed Maturity Securities Equity Securities (In thousands) Proceeds $ 462,993 $ 74,657 $ 292,993 $ — $ 183 $ — Gross investment gains $ 1,879 $ 1,006 $ 8,204 $ — $ 6 $ — Gross investment losses (3,628 ) (2,890 ) (3,657 ) — — — OTTI losses — (870 ) — — — — Net investment gains (losses) $ (1,749 ) $ (2,754 ) $ 4,547 $ — $ 6 $ — |
Variable Interest Entity, Not Primary Beneficiary [Member] | |
Variable Interest Entity [Line Items] | |
Variable Interest Entities | The carrying amount and maximum exposure to loss relating to VIEs in which the Company holds a significant variable interest but is not the primary beneficiary and which have not been consolidated were as follows at: December 31, 2017 2016 Carrying Maximum Carrying Maximum (In thousands) Fixed maturity securities AFS: Structured Securities (2) $ 431,406 $ 431,406 $ 444,013 $ 444,013 Foreign corporate 6,394 6,394 5,884 5,884 Total $ 437,800 $ 437,800 $ 449,897 $ 449,897 _____________ (1) The maximum exposure to loss relating to fixed maturity securities AFS is equal to their carrying amounts or the carrying amounts of retained interests. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee. (2) For these variable interests, the Company’s involvement is limited to that of a passive investor in mortgage-backed or asset-backed securities issued by trusts that do not have substantial equity. |
Commercial | |
Mortgage Loans on Real Estate [Line Items] | |
Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories | The credit quality of commercial mortgage loans was as follows at: Recorded Investment Debt Service Coverage Ratios Total % of > 1.20x 1.00x - 1.20x < 1.00x (Dollars in thousands) December 31, 2017 Loan-to-value ratios: Less than 65% $ 243,217 $ 17,425 $ — $ 260,642 94.2 % 65% to 75% 12,957 — — 12,957 4.7 76% to 80% 3,027 — — 3,027 1.1 Total $ 259,201 $ 17,425 $ — $ 276,626 100.0 % December 31, 2016 Loan-to-value ratios: Less than 65% $ 259,711 $ 15,614 $ 999 $ 276,324 96.6 % 65% to 75% 9,678 — — 9,678 3.4 Total $ 269,389 $ 15,614 $ 999 $ 286,002 100.0 % |
Agricultural | |
Mortgage Loans on Real Estate [Line Items] | |
Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories | The credit quality of agricultural mortgage loans was as follows at: December 31, 2017 2016 Recorded % of Recorded % of (Dollars in thousands) Loan-to-value ratios: Less than 65% $ 119,077 99.2 % $ 119,974 98.4 % 65% to 75% 907 0.8 1,884 1.6 Total $ 119,984 100.0 % $ 121,858 100.0 % |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location | The following table presents the primary underlying risk exposure, gross notional amount, and estimated fair value of the Company’s derivatives, excluding embedded derivatives, held at: Primary Underlying Risk Exposure December 31, 2017 2016 Estimated Fair Value Estimated Fair Value Gross Assets Liabilities Gross Assets Liabilities (In thousands) Derivatives Designated as Hedging Instruments Cash flow hedges: Foreign currency swaps Foreign currency exchange rate $ 70,307 $ 1,571 $ 1,357 $ 33,930 $ 4,947 $ — Derivatives Not Designated or Not Qualifying as Hedging Instruments Foreign currency swaps Foreign currency exchange rate 16,636 2,213 254 14,063 3,709 — Total $ 86,943 $ 3,784 $ 1,611 $ 47,993 $ 8,656 $ — |
Offsetting Assets [Table Text Block] | The estimated fair values of the Company’s net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at: December 31, 2017 2016 Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement Assets Liabilities Assets Liabilities (In thousands) Gross estimated fair value of derivatives: OTC-bilateral (1) $ 3,903 $ 1,482 $ 8,850 $ — Total gross estimated fair value of derivatives (1) 3,903 1,482 8,850 — Amounts offset on the balance sheets — — — — Estimated fair value of derivatives presented on the balance sheets (1) 3,903 1,482 8,850 — Gross amounts not offset on the balance sheets: Gross estimated fair value of derivatives: (2) OTC-bilateral (1,482 ) (1,482 ) — — Cash collateral: (3) OTC-bilateral (2,367 ) — (8,672 ) — Securities collateral: (4) OTC-bilateral — — — — Net amount after application of master netting agreements and collateral $ 54 $ — $ 178 $ — ______________ (1) At December 31, 2017 and 2016 , derivative assets included income or (expense) accruals reported in accrued investment income or in other liabilities of $119 thousand and $194 thousand , respectively and derivative liabilities included (income) or expense accruals reported in accrued investment income or in other liabilities of ($129) thousand and $0 , respectively. (2) Estimated fair value of derivatives is limited to the amount that is subject to set-off and includes income or expense accruals. (3) Cash collateral received is included in cash and cash equivalents or in short-term investments, and the obligation to return it is included in payables for collateral transactions on the balance sheet. The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements. At December 31, 2017 and 2016 , the Company received excess cash collateral of $3.0 million and $270 thousand , respectively, and did not provide any excess cash collateral, which is not included in the table above due to the foregoing limitation. (4) Securities collateral received by the Company is held in separate custodial accounts and is not recorded on the balance sheet. Subject to certain constraints, the Company is permitted by contract to sell or re-pledge this collateral, but at December 31, 2017 , none of the collateral had been sold or re-pledged. Securities collateral pledged by the Company is reported in fixed maturity securities on the balance sheet. Subject to certain constraints, the counterparties are permitted by contract to sell or re-pledge this collateral. The amount of securities collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements and cash collateral. At December 31, 2017 and 2016 , the Company did not receive excess securities collateral, and provided excess securities collateral with an estimated fair value of $707 thousand and $0 , respectively, for its OTC-bilateral derivatives. |
Offsetting Liabilities [Table Text Block] | The estimated fair values of the Company’s net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at: December 31, 2017 2016 Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement Assets Liabilities Assets Liabilities (In thousands) Gross estimated fair value of derivatives: OTC-bilateral (1) $ 3,903 $ 1,482 $ 8,850 $ — Total gross estimated fair value of derivatives (1) 3,903 1,482 8,850 — Amounts offset on the balance sheets — — — — Estimated fair value of derivatives presented on the balance sheets (1) 3,903 1,482 8,850 — Gross amounts not offset on the balance sheets: Gross estimated fair value of derivatives: (2) OTC-bilateral (1,482 ) (1,482 ) — — Cash collateral: (3) OTC-bilateral (2,367 ) — (8,672 ) — Securities collateral: (4) OTC-bilateral — — — — Net amount after application of master netting agreements and collateral $ 54 $ — $ 178 $ — ______________ (1) At December 31, 2017 and 2016 , derivative assets included income or (expense) accruals reported in accrued investment income or in other liabilities of $119 thousand and $194 thousand , respectively and derivative liabilities included (income) or expense accruals reported in accrued investment income or in other liabilities of ($129) thousand and $0 , respectively. (2) Estimated fair value of derivatives is limited to the amount that is subject to set-off and includes income or expense accruals. (3) Cash collateral received is included in cash and cash equivalents or in short-term investments, and the obligation to return it is included in payables for collateral transactions on the balance sheet. The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements. At December 31, 2017 and 2016 , the Company received excess cash collateral of $3.0 million and $270 thousand , respectively, and did not provide any excess cash collateral, which is not included in the table above due to the foregoing limitation. (4) Securities collateral received by the Company is held in separate custodial accounts and is not recorded on the balance sheet. Subject to certain constraints, the Company is permitted by contract to sell or re-pledge this collateral, but at December 31, 2017 , none of the collateral had been sold or re-pledged. Securities collateral pledged by the Company is reported in fixed maturity securities on the balance sheet. Subject to certain constraints, the counterparties are permitted by contract to sell or re-pledge this collateral. The amount of securities collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements and cash collateral. At December 31, 2017 and 2016 , the Company did not receive excess securities collateral, and provided excess securities collateral with an estimated fair value of $707 thousand and $0 , respectively, for its OTC-bilateral derivatives. |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivatives, Methods of Accounting, Derivatives Not Designated or Qualifying as Hedges [Policy Text Block] | The following tables present the amount and location of gains (losses) recognized for derivatives and gains (losses) pertaining to hedged items presented in net derivative gains (losses): Year Ended December 31, 2017 Net Derivative Gains (Losses) Recognized for Derivatives (1) Net Derivatives Gains (Losses) Recognized for Hedged Items (2) Amount of Gains (Losses) deferred in AOCI (In thousands) Derivatives Designated as Hedging Instruments: Cash flow hedges (3): Foreign currency exchange rate derivatives $ (9 ) $ — $ (4,257 ) Total cash flow hedges (9 ) — (4,257 ) Derivatives Not Designated or Not Qualifying as Hedging Instruments: Foreign currency exchange rate derivatives (1,609 ) 373 — Embedded derivatives (156,297 ) — — Total non-qualifying hedges (157,906 ) 373 — Total $ (157,915 ) $ 373 $ (4,257 ) Year Ended December 31, 2016 Net Derivative Gains (Losses) Recognized for Derivatives (1) Net Derivatives Gains (Losses) Recognized for Hedged Items (2) Amount of Gains (Losses) deferred in AOCI (In thousands) Derivatives Designated as Hedging Instruments: Cash flow hedges (3): Foreign currency exchange rate derivatives $ 55 $ (44 ) $ 1,584 Total cash flow hedges 55 (44 ) 1,584 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Foreign currency exchange rate derivatives 2,114 (757 ) — Embedded derivatives 66,079 — — Total non-qualifying hedges 68,193 (757 ) — Total $ 68,248 $ (801 ) $ 1,584 Year Ended December 31, 2015 Net Derivative Gains (Losses) Recognized for Derivatives (1) Net Derivatives Gains (Losses) Recognized for Hedged Items (2) Amount of Gains (Losses) deferred in AOCI (In thousands) Derivatives Designated as Hedging Instruments: Cash flow hedges (3): Foreign currency exchange rate derivatives $ — $ (32 ) $ 2,760 Total cash flow hedges — (32 ) 2,760 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Foreign currency exchange rate derivatives 1,557 (456 ) — Embedded derivatives 63,716 — — Total non-qualifying hedges 65,273 (456 ) — Total $ 65,273 $ (488 ) $ 2,760 ______________ (1) Includes gains (losses) reclassified from AOCI for cash flow hedges. Ineffective portion of the gains (losses) recognized in income is not significant . (2) Includes foreign currency transaction gains (losses) on hedged items in cash flow and nonqualifying hedging relationships. (3) All components of each derivative's gain or loss were included in the assessment of hedge effectiveness. |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following tables present the amount and location of gains (losses) recognized for derivatives and gains (losses) pertaining to hedged items presented in net derivative gains (losses): Year Ended December 31, 2017 Net Derivative Gains (Losses) Recognized for Derivatives (1) Net Derivatives Gains (Losses) Recognized for Hedged Items (2) Amount of Gains (Losses) deferred in AOCI (In thousands) Derivatives Designated as Hedging Instruments: Cash flow hedges (3): Foreign currency exchange rate derivatives $ (9 ) $ — $ (4,257 ) Total cash flow hedges (9 ) — (4,257 ) Derivatives Not Designated or Not Qualifying as Hedging Instruments: Foreign currency exchange rate derivatives (1,609 ) 373 — Embedded derivatives (156,297 ) — — Total non-qualifying hedges (157,906 ) 373 — Total $ (157,915 ) $ 373 $ (4,257 ) Year Ended December 31, 2016 Net Derivative Gains (Losses) Recognized for Derivatives (1) Net Derivatives Gains (Losses) Recognized for Hedged Items (2) Amount of Gains (Losses) deferred in AOCI (In thousands) Derivatives Designated as Hedging Instruments: Cash flow hedges (3): Foreign currency exchange rate derivatives $ 55 $ (44 ) $ 1,584 Total cash flow hedges 55 (44 ) 1,584 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Foreign currency exchange rate derivatives 2,114 (757 ) — Embedded derivatives 66,079 — — Total non-qualifying hedges 68,193 (757 ) — Total $ 68,248 $ (801 ) $ 1,584 Year Ended December 31, 2015 Net Derivative Gains (Losses) Recognized for Derivatives (1) Net Derivatives Gains (Losses) Recognized for Hedged Items (2) Amount of Gains (Losses) deferred in AOCI (In thousands) Derivatives Designated as Hedging Instruments: Cash flow hedges (3): Foreign currency exchange rate derivatives $ — $ (32 ) $ 2,760 Total cash flow hedges — (32 ) 2,760 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Foreign currency exchange rate derivatives 1,557 (456 ) — Embedded derivatives 63,716 — — Total non-qualifying hedges 65,273 (456 ) — Total $ 65,273 $ (488 ) $ 2,760 ______________ (1) Includes gains (losses) reclassified from AOCI for cash flow hedges. Ineffective portion of the gains (losses) recognized in income is not significant . (2) Includes foreign currency transaction gains (losses) on hedged items in cash flow and nonqualifying hedging relationships. (3) All components of each derivative's gain or loss were included in the assessment of hedge effectiveness. |
Components of Net Derivatives Gains (Losses) | The following tables present the amount and location of gains (losses) recognized for derivatives and gains (losses) pertaining to hedged items presented in net derivative gains (losses): Year Ended December 31, 2017 Net Derivative Gains (Losses) Recognized for Derivatives (1) Net Derivatives Gains (Losses) Recognized for Hedged Items (2) Amount of Gains (Losses) deferred in AOCI (In thousands) Derivatives Designated as Hedging Instruments: Cash flow hedges (3): Foreign currency exchange rate derivatives $ (9 ) $ — $ (4,257 ) Total cash flow hedges (9 ) — (4,257 ) Derivatives Not Designated or Not Qualifying as Hedging Instruments: Foreign currency exchange rate derivatives (1,609 ) 373 — Embedded derivatives (156,297 ) — — Total non-qualifying hedges (157,906 ) 373 — Total $ (157,915 ) $ 373 $ (4,257 ) Year Ended December 31, 2016 Net Derivative Gains (Losses) Recognized for Derivatives (1) Net Derivatives Gains (Losses) Recognized for Hedged Items (2) Amount of Gains (Losses) deferred in AOCI (In thousands) Derivatives Designated as Hedging Instruments: Cash flow hedges (3): Foreign currency exchange rate derivatives $ 55 $ (44 ) $ 1,584 Total cash flow hedges 55 (44 ) 1,584 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Foreign currency exchange rate derivatives 2,114 (757 ) — Embedded derivatives 66,079 — — Total non-qualifying hedges 68,193 (757 ) — Total $ 68,248 $ (801 ) $ 1,584 Year Ended December 31, 2015 Net Derivative Gains (Losses) Recognized for Derivatives (1) Net Derivatives Gains (Losses) Recognized for Hedged Items (2) Amount of Gains (Losses) deferred in AOCI (In thousands) Derivatives Designated as Hedging Instruments: Cash flow hedges (3): Foreign currency exchange rate derivatives $ — $ (32 ) $ 2,760 Total cash flow hedges — (32 ) 2,760 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Foreign currency exchange rate derivatives 1,557 (456 ) — Embedded derivatives 63,716 — — Total non-qualifying hedges 65,273 (456 ) — Total $ 65,273 $ (488 ) $ 2,760 ______________ (1) Includes gains (losses) reclassified from AOCI for cash flow hedges. Ineffective portion of the gains (losses) recognized in income is not significant . (2) Includes foreign currency transaction gains (losses) on hedged items in cash flow and nonqualifying hedging relationships. (3) All components of each derivative's gain or loss were included in the assessment of hedge effectiveness. |
Net Embedded Derivatives | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Components of Net Derivatives Gains (Losses) | The following table presents changes in estimated fair value related to embedded derivatives: Years Ended December 31, 2017 2016 2015 (In thousands) Net derivative gains (losses) (1), (2) $ (156,297 ) $ 66,079 $ 63,716 ______________ (1) The valuation of direct guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses) in connection with this adjustment were $466 thousand , ($57) thousand and $1.4 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. In addition, the valuation of ceded guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses) in connection with this adjustment were ($24.7) million , ($19.0) million and ($2.6) million for the years ended December 31, 2017 , 2016 and 2015 , respectively. (2) See Note 5 for discussion of related party net derivative gains (losses). |
Schedule of Derivative Instruments | The following table presents the estimated fair value and balance sheet location of the Company’s embedded derivatives that have been separated from their host contracts at : December 31, Balance Sheet Location 2017 2016 (In thousands) Embedded derivatives within asset host contracts: Ceded guaranteed minimum benefits Premiums, reinsurance and other receivables $ 307,698 $ 379,297 Embedded derivatives within liability host contracts: Direct guaranteed minimum benefits Policyholder account balances $ (51,130 ) $ (23,740 ) Fixed annuities with equity indexed returns Policyholder account balances 11,195 — Embedded derivatives within liability host contracts $ (39,935 ) $ (23,740 ) |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Recurring Fair Value Measurements | December 31, 2017 Fair Value Hierarchy Level 1 Level 2 Level 3 Total Estimated (In thousands) Assets Fixed maturity securities: U.S. corporate $ — $ 750,891 $ 46,733 $ 797,624 U.S. government and agency 420,084 126,979 — 547,063 Foreign corporate — 259,897 49,217 309,114 RMBS — 207,338 14,442 221,780 CMBS — 195,306 5,115 200,421 State and political subdivision — 70,286 — 70,286 ABS — 58,872 — 58,872 Foreign government — 16,403 — 16,403 Total fixed maturity securities 420,084 1,685,972 115,507 2,221,563 Derivative assets: (1) Foreign currency exchange rate — 3,784 — 3,784 Embedded derivatives within asset host contracts (2) — — 307,698 307,698 Separate account assets — 5,021,633 — 5,021,633 Total assets $ 420,084 $ 6,711,389 $ 423,205 $ 7,554,678 Liabilities Derivative liabilities: (1) Foreign currency exchange rate $ — $ 1,611 $ — $ 1,611 Embedded derivatives within liability host contracts (2) — — (39,935 ) (39,935 ) Total liabilities $ — $ 1,611 $ (39,935 ) $ (38,324 ) December 31, 2016 Fair Value Hierarchy Level 1 Level 2 Level 3 Total Estimated (In thousands) Assets Fixed maturity securities: U.S. corporate $ — $ 681,406 $ 40,405 $ 721,811 U.S. government and agency 289,186 117,359 — 406,545 Foreign corporate — 200,454 31,886 232,340 RMBS — 217,091 21,296 238,387 CMBS — 173,763 5,193 178,956 State and political subdivision — 56,320 — 56,320 ABS — 21,736 4,934 26,670 Foreign government — 17,485 — 17,485 Total fixed maturity securities 289,186 1,485,614 103,714 1,878,514 Derivative assets: (1) Foreign currency exchange rate — 8,656 — 8,656 Embedded derivatives within asset host contracts (2) — — 379,297 379,297 Separate account assets — 4,758,449 — 4,758,449 Total assets $ 289,186 $ 6,252,719 $ 483,011 $ 7,024,916 Liabilities Derivative liabilities: (1) Foreign currency exchange rate $ — $ — $ — $ — Embedded derivatives within liability host contracts (2) — — (23,740 ) (23,740 ) Total liabilities $ — $ — $ (23,740 ) $ (23,740 ) ______________ (1) Derivative assets are presented within other invested assets on the balance sheets and derivative liabilities are presented within other liabilities on the balance sheets. The amounts are presented gross in the tables above to reflect the presentation on the balance sheets. (2) Embedded derivatives within asset host contracts are presented within premiums, reinsurance and other receivables on the balance sheets. Embedded derivatives within liability host contracts are presented within policyholder account balances on the balance sheets. |
Fair Value Inputs, Quantitative Information | The following table presents certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at: December 31, 2017 December 31, 2016 Impact of Valuation Techniques Significant Range Weighted Range Weighted Fixed maturity securities (3) U.S. corporate and foreign corporate • Matrix pricing • Offered quotes (4) 98 - 142 108 94 - 136 107 Increase • Market pricing • Quoted prices (4) 87 - 109 99 75 - 110 97 Increase RMBS • Market pricing • Quoted prices (4) 70 - 101 85 56 - 111 86 Increase (5) CMBS • Market pricing • Quoted prices (4) 104 - 104 104 Increase (5) Embedded derivatives Direct, assumed and ceded guaranteed minimum benefits • Option pricing • Mortality rates: Ages 0 - 40 0% - 0.09% 0% - 0.09% Decrease (6) Ages 41 - 60 0.04% - 0.65% 0.04% - 0.65% Decrease (6) Ages 61 - 115 0.26% - 100% 0.26% - 100% Decrease (6) • Lapse rates: Durations 1 - 10 0.25% - 100% 0.25% - 100% Decrease (7) Durations 11 - 20 2% - 100% 2% - 100% Decrease (7) Durations 21 - 116 2% - 100% 2% - 100% Decrease (7) • Utilization rates 0% - 25% 0% - 25% Increase (8) • Withdrawal rates 0.25% - 10% 0.25% - 10% (9) • Long-term equity volatilities 17.40% - 25% 17.40% - 25% Increase (10) • Nonperformance risk spread 0.64% - 1.43% 0.04% - 0.57% Decrease (11) ______________ (1) The weighted average for fixed maturity securities is determined based on the estimated fair value of the securities. (2) The impact of a decrease in input would have the opposite impact on estimated fair value. For embedded derivatives, changes to direct and assumed guaranteed minimum benefits are based on liability positions; changes to ceded guaranteed minimum benefits are based on asset positions. (3) Significant increases (decreases) in expected default rates in isolation would result in substantially lower (higher) valuations. (4) Range and weighted average are presented in accordance with the market convention for fixed maturity securities of dollars per hundred dollars of par. (5) Changes in the assumptions used for the probability of default is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumptions used for prepayment rates. (6) Mortality rates vary by age and by demographic characteristics such as gender. Mortality rate assumptions are based on company experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (7) Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in the money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. For any given contract, lapse rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (8) The utilization rate assumption estimates the percentage of contract holders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible. The rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder. For any given contract, utilization rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (9) The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value. (10) Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (11) Nonperformance risk spread varies by duration and by currency. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the embedded derivative. |
Fair Value Inputs, Quantitative Information | The following table presents certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at: December 31, 2017 December 31, 2016 Impact of Valuation Techniques Significant Range Weighted Range Weighted Fixed maturity securities (3) U.S. corporate and foreign corporate • Matrix pricing • Offered quotes (4) 98 - 142 108 94 - 136 107 Increase • Market pricing • Quoted prices (4) 87 - 109 99 75 - 110 97 Increase RMBS • Market pricing • Quoted prices (4) 70 - 101 85 56 - 111 86 Increase (5) CMBS • Market pricing • Quoted prices (4) 104 - 104 104 Increase (5) Embedded derivatives Direct, assumed and ceded guaranteed minimum benefits • Option pricing • Mortality rates: Ages 0 - 40 0% - 0.09% 0% - 0.09% Decrease (6) Ages 41 - 60 0.04% - 0.65% 0.04% - 0.65% Decrease (6) Ages 61 - 115 0.26% - 100% 0.26% - 100% Decrease (6) • Lapse rates: Durations 1 - 10 0.25% - 100% 0.25% - 100% Decrease (7) Durations 11 - 20 2% - 100% 2% - 100% Decrease (7) Durations 21 - 116 2% - 100% 2% - 100% Decrease (7) • Utilization rates 0% - 25% 0% - 25% Increase (8) • Withdrawal rates 0.25% - 10% 0.25% - 10% (9) • Long-term equity volatilities 17.40% - 25% 17.40% - 25% Increase (10) • Nonperformance risk spread 0.64% - 1.43% 0.04% - 0.57% Decrease (11) ______________ (1) The weighted average for fixed maturity securities is determined based on the estimated fair value of the securities. (2) The impact of a decrease in input would have the opposite impact on estimated fair value. For embedded derivatives, changes to direct and assumed guaranteed minimum benefits are based on liability positions; changes to ceded guaranteed minimum benefits are based on asset positions. (3) Significant increases (decreases) in expected default rates in isolation would result in substantially lower (higher) valuations. (4) Range and weighted average are presented in accordance with the market convention for fixed maturity securities of dollars per hundred dollars of par. (5) Changes in the assumptions used for the probability of default is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumptions used for prepayment rates. (6) Mortality rates vary by age and by demographic characteristics such as gender. Mortality rate assumptions are based on company experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (7) Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in the money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. For any given contract, lapse rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (8) The utilization rate assumption estimates the percentage of contract holders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible. The rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder. For any given contract, utilization rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (9) The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value. (10) Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (11) Nonperformance risk spread varies by duration and by currency. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the embedded derivative. |
Fair Value, Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables summarize the change of all assets and (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Fixed Maturity Securities Net Embedded Derivatives (2) Corporate (1) Structured Securities (In thousands) Balance, January 1, 2016 $ 55,189 $ 13,862 $ 360,381 Total realized/unrealized gains (losses) included in net income (loss) (3) (4) (64 ) 249 66,079 Total realized/unrealized gains (losses) included in AOCI (1,769 ) 152 — Purchases (5) 21,260 23,916 — Sales (5) (462 ) (1,901 ) — Issuances (5) — — — Settlements (5) — — (23,423 ) Transfers into Level 3 (6) — — — Transfers out of Level 3 (6) (1,863 ) (4,855 ) — Balance, December 31, 2016 72,291 31,423 403,037 Total realized/unrealized gains (losses) included in net income (loss) (3) (4) 3 415 (156,297 ) Total realized/unrealized gains (losses) included in AOCI 5,969 1,051 — Purchases (5) 26,542 — — Sales (5) (2,320 ) (8,398 ) — Issuances (5) — — — Settlements (5) — — 100,893 Transfers into Level 3 (6) — — — Transfers out of Level 3 (6) (6,535 ) (4,934 ) — Balance, December 31, 2017 $ 95,950 $ 19,557 $ 347,633 Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2015 (7) $ 23 $ 83 $ 67,551 Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2016 (7) $ (64 ) $ 249 $ 71,709 Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2017 (7) $ 1 $ 441 $ (141,133 ) Gains (Losses) Data for the year ended December 31, 2015 Total realized/unrealized gains (losses) included in net income (loss) (3) (4) $ 79 $ 83 $ 63,716 Total realized/unrealized gains (losses) included in AOCI $ (1,849 ) $ 55 $ — ______________ (1) Comprised of U.S. and foreign corporate securities. (2) Embedded derivative assets and liabilities are presented net for purposes of the rollforward. (3) Amortization of premium/accretion of discount is included within net investment income. Impairments charged to net income (loss) on securities are included in net investment gains (losses). Lapses associated with net embedded derivatives are included in net derivative gains (losses). Substantially all realized/unrealized gains (losses) included in net income (loss) for net embedded derivatives are reported in net derivatives gains (losses). (4) Interest accruals, as well as cash interest coupons received, are excluded from the rollforward. (5) Items purchased/issued and then sold/settled in the same period are excluded from the rollforward. Fees attributed to embedded derivatives are included in settlements. (6) Gains and losses, in net income (loss) and OCI, are calculated assuming transfers into and/or out of Level 3 occurred at the beginning of the period. Items transferred into and then out of Level 3 in the same period are excluded from the rollforward. (7) Changes in unrealized gains (losses) included in net income (loss) relate to assets and liabilities still held at the end of the respective periods. Substantially all changes in unrealized gains (losses) included in net income (loss) for net embedded derivatives are reported in net derivative gains (losses). |
Fair Value of Financial Instruments Carried at Other Than Fair Value | The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows at: December 31, 2017 Fair Value Hierarchy Carrying Level 1 Level 2 Level 3 Total (In thousands) Assets Mortgage loans $ 394,863 $ — $ — $ 395,894 $ 395,894 Premiums, reinsurance and other receivables $ 20,489 $ — $ 900 $ 19,728 $ 20,628 Liabilities Policyholder account balances $ 1,154,733 $ — $ — $ 1,140,886 $ 1,140,886 December 31, 2016 Fair Value Hierarchy Carrying Level 1 Level 2 Level 3 Total (In thousands) Assets Mortgage loans $ 406,085 $ — $ — $ 404,079 $ 404,079 Premiums, reinsurance and other receivables $ 30,122 $ — $ 2,095 $ 30,272 $ 32,367 Liabilities Policyholder account balances $ 1,214,186 $ — $ — $ 1,283,338 $ 1,283,338 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedules of statutory net income, capital and surplus and reserve strengthening by subsidiary | Statutory net income (loss) was as follows: Years Ended December 31, Company State of Domicile 2017 2016 2015 (In thousands) Brighthouse Life Insurance Company of NY New York $ 22,166 $ (87,290 ) $ 17,194 Statutory capital and surplus was as follows at: December 31, Company 2017 2016 (In thousands) Brighthouse Life Insurance Company of NY $ 294,298 $ 195,824 |
Components of Accumulated Other Comprehensive Income (Loss) | Information regarding changes on the balances of each component of AOCI was as follows: Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized Gains (Losses) on Derivatives Total (In thousands) Balance at December 31, 2014 $ 39,312 $ 279 $ 39,591 OCI before reclassifications (50,792 ) 2,760 (48,032 ) Deferred income tax benefit (expense) 17,778 (966 ) 16,812 AOCI before reclassifications, net of income tax 6,298 2,073 8,371 Amounts reclassified from AOCI (4,561 ) — (4,561 ) Deferred income tax benefit (expense) 1,596 — 1,596 Amounts reclassified from AOCI, net of income tax (2,965 ) — (2,965 ) Balance at December 31, 2015 3,333 2,073 5,406 OCI before reclassifications (5,777 ) 1,584 (4,193 ) Deferred income tax benefit (expense) 2,022 (554 ) 1,468 AOCI before reclassifications, net of income tax (422 ) 3,103 2,681 Amounts reclassified from AOCI 2,711 (55 ) 2,656 Deferred income tax benefit (expense) (949 ) 19 (930 ) Amounts reclassified from AOCI, net of income tax 1,762 (36 ) 1,726 Balance at December 31, 2016 1,340 3,067 4,407 OCI before reclassifications 33,257 (4,257 ) 29,000 Deferred income tax benefit (expense) (11,640 ) 1,490 (10,150 ) AOCI before reclassifications, net of income tax 22,957 300 23,257 Amounts reclassified from AOCI 1,714 9 1,723 Deferred income tax benefit (expense) (2) 4,652 (4 ) 4,648 Amounts reclassified from AOCI, net of income tax 6,366 5 6,371 Balance at December 31, 2017 $ 29,323 $ 305 $ 29,628 ______________ (1) See Note 6 for information on offsets to investments related to future policy benefits, DAC and DSI. |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Information regarding amounts reclassified out of each component of AOCI was as follows: AOCI Components Amounts Reclassified from AOCI Statement of Operations and Comprehensive Income (Loss) Location Years Ended December 31, 2017 2016 2015 (In thousands) Net unrealized investment gains (losses): Net unrealized investment gains (losses) $ (1,761 ) $ (2,745 ) $ 4,550 Net investment gains (losses) Net unrealized investment gains (losses) 47 79 228 Net investment income Net unrealized investment gains (losses) — (45 ) (217 ) Net derivative gains (losses) Net unrealized investment gains (losses), before income tax (1,714 ) (2,711 ) 4,561 Income tax (expense) benefit (4,652 ) 949 (1,596 ) Net unrealized investment gains (losses), net of income tax $ (6,366 ) $ (1,762 ) $ 2,965 Unrealized gains (losses) on derivatives - cash flow hedges: Foreign currency swaps $ (9 ) $ 55 $ — Net derivative gains (losses) Gains (losses) on cash flow hedges, before income tax (9 ) 55 — Income tax (expense) benefit 4 (19 ) — Gains (losses) on cash flow hedges, net of income tax $ (5 ) $ 36 $ — Total reclassifications, net of income tax $ (6,371 ) $ (1,726 ) $ 2,965 |
Other Expenses (Tables)
Other Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Other Expenses | Information on other expenses was as follows: Years Ended December 31, 2017 2016 2015 (In thousands) Compensation $ 13,508 $ 8,535 $ 13,421 Pension, postretirement and postemployment benefit costs — 796 1,334 Commissions 33,129 17,586 21,291 Volume-related costs 3,171 4,943 6,123 Related party expenses on ceded reinsurance 4,743 10,535 11,276 Capitalization of DAC (17,089 ) (4,976 ) (4,768 ) Premium taxes, licenses and fees 3,795 2,590 3,607 Professional services 5,209 1,529 373 Rent and related expenses 481 1,096 1,065 Other 19,006 14,393 11,491 Total other expenses $ 65,953 $ 57,027 $ 65,213 |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Provision for income tax from continuing operations | The provision for income tax was as follows: Years Ended December 31, 2017 2016 2015 (In thousands) Current: Federal $ 17,352 $ (57,108 ) $ 1,148 Foreign 17 — — Subtotal 17,369 (57,108 ) 1,148 Deferred: Federal (118,094 ) 99,260 840 Provision for income tax expense (benefit) $ (100,725 ) $ 42,152 $ 1,988 |
Income tax for continuing operations effective rate reconciliation | The reconciliation of the income tax provision at the U.S. statutory rate to the provision for income tax as reported was as follows: Years Ended December 31, 2017 2016 2015 (In thousands) Tax provision at U.S. statutory rate $ (17,129 ) $ 46,397 $ 8,779 Tax effect of: Rate revaluation due to tax reform (1) (77,308 ) — — Dividend received deduction (5,159 ) (4,732 ) (5,589 ) Prior year tax (493 ) 1,282 (624 ) Tax credits (636 ) (797 ) (580 ) Other, net — 2 2 Provision for income tax expense (benefit) $ (100,725 ) $ 42,152 $ 1,988 |
Components of deferred tax assets and liabilities | Deferred income tax represents the tax effect of the differences between the book and tax bases of assets and liabilities. Net deferred income tax assets and liabilities consisted of the following at: December 31, 2017 2016 (In thousands) Deferred income tax assets: Tax credit carryforwards $ 3,463 $ 4,491 Net operating loss carryforwards 3,661 — Other 2,973 2,206 Total deferred income tax assets 10,097 6,697 Deferred income tax liabilities: Investments, including derivatives 958 1,102 Policyholder liabilities and receivables 94,717 210,814 Intangibles 1,384 1,850 Net unrealized investment gains 7,875 2,373 DAC 17,661 10,397 Total deferred income tax liabilities 122,595 226,536 Net deferred income tax asset (liability) $ (112,498 ) $ (219,839 ) |
Reconciliation of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows: Years Ended December 31, 2017 2016 2015 (In thousands) Balance at January 1, $ 1,204 $ 983 $ 983 Additions for tax positions of prior years 49 300 — Reductions for tax positions of prior years (62 ) (23 ) — Additions for tax positions of current year 169 300 — Reductions for tax positions of current year (318 ) — — Settlements with tax authorities (66 ) (356 ) — Balance at December 31, $ 976 $ 1,204 $ 983 Unrecognized tax benefits that, if recognized would impact the effective rate $ 976 $ 1,130 $ 909 |
Contingencies, Commitments an35
Contingencies, Commitments and Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Insurance-related Assessments | |
Loss Contingencies [Line Items] | |
Schedule of Loss Contingencies by Contingency | Assets and liabilities held for insolvency assessments were as follows: December 31, 2017 2016 (In thousands) Other Assets: Premium tax offset for future discounted and undiscounted assessments $ 300 $ 300 Premium tax offsets currently available for paid assessments 51 1,829 Total $ 351 $ 2,129 Other Liabilities: Insolvency assessments $ 400 $ 400 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions [Table Text Block] | The following table summarizes assets and liabilities from transactions with related party broker-dealers as follow at: December 31, 2017 2016 (In thousands) Fee income receivables $ 1,090 $ 934 Secured demand notes $ — $ — The following table summarizes assets and liabilities from transactions with related parties (excluding broker-dealer transactions) at: December 31, 2017 2016 (In thousands) Assets $ 536,843 $ 322,394 Liabilities $ 448,237 $ 99,641 The following table summarizes income and expense from transactions with related party broker-dealers for the years indicated: Years Ended December 31, 2017 2016 2015 (In thousands) Fee income $ 12,393 $ 9,968 $ 10,515 Commission expense $ 39,306 $ 32,191 $ 30,672 The following table summarizes income and expense from transactions with related parties (excluding broker-dealer transactions) for the years indicated: Years Ended December 31, 2017 2016 2015 (In thousands) Income $ (303,626 ) $ 50,358 $ 16,759 Expense $ (66,252 ) $ (76,613 ) $ (44,358 ) |
Business, Basis of Presentati37
Business, Basis of Presentation and Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($) | Aug. 04, 2017shares | Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Number of segments | 2 | ||||
Property, Equipment, Leasehold Improvements and Computer Software [Abstract] | |||||
Cost basis of computer software | $ 0 | $ 12,400 | |||
Accumulated amortization of computer software | 0 | 5,900 | |||
Amortization expense related to computer software | 544 | $ 2,200 | $ 13 | ||
Finite-Lived Intangible Assets [Line Items] | |||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 0 | ||||
Common Stock, Shares, Issued | shares | 200,000 | 200,000 | |||
Distribution Rights [Member] | Minimum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization period | 10 years | ||||
Distribution Rights [Member] | Maximum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization period | 40 years | ||||
Computer Software, Intangible Asset [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization period | 4 years | ||||
Accumulated Other Comprehensive Income (Loss) | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 5,252 | ||||
Spinoff [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Common Stock, Shares, Issued | shares | 119,773,106 | ||||
Spinoff [Member] | Minimum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Common Stock Distribution by Parent | 80.10% | ||||
Parent shareholders' percentage [Member] | Spinoff [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Common Stock Distribution by Parent | 80.80% | ||||
Common Stock, Shares, Issued | shares | 96,776,670 |
Segment Information (Operating
Segment Information (Operating Results) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Pre-tax adjusted earnings | $ (48,940) | $ 132,562 | $ 25,083 |
Provision for income tax expense (benefit) | 100,725 | (42,152) | (1,988) |
Net investment gains (losses) | (1,178) | (3,737) | 4,399 |
Net derivative gains (losses) | (157,222) | 67,726 | 65,000 |
Other adjustments to net income | (46,266) | 29,192 | (9,465) |
Net income (loss) | 51,785 | 90,410 | 23,095 |
Annuities | |||
Segment Reporting Information [Line Items] | |||
Interest revenue | 57,142 | 27,747 | 23,210 |
Life | |||
Segment Reporting Information [Line Items] | |||
Interest revenue | 19,078 | 17,108 | 15,432 |
Corporate & Other | |||
Segment Reporting Information [Line Items] | |||
Interest revenue | 10,433 | 13,204 | 14,516 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Pre-tax adjusted earnings | 75,153 | 103,081 | (28,298) |
Provision for income tax expense (benefit) | (57,292) | 31,834 | (16,695) |
Adjusted earnings | 132,445 | 71,247 | (11,603) |
Operating Segments | Annuities | |||
Segment Reporting Information [Line Items] | |||
Pre-tax adjusted earnings | 65,637 | 52,855 | 20,794 |
Provision for income tax expense (benefit) | 16,104 | 14,623 | 1,139 |
Adjusted earnings | 49,533 | 38,232 | 19,655 |
Operating Segments | Life | |||
Segment Reporting Information [Line Items] | |||
Pre-tax adjusted earnings | 2,692 | 40,561 | (60,934) |
Provision for income tax expense (benefit) | 1,533 | 14,197 | (21,327) |
Adjusted earnings | 1,159 | 26,364 | (39,607) |
Operating Segments | Corporate & Other | |||
Segment Reporting Information [Line Items] | |||
Pre-tax adjusted earnings | 6,824 | 9,665 | 11,842 |
Provision for income tax expense (benefit) | (74,929) | 3,014 | 3,493 |
Adjusted earnings | 81,753 | 6,651 | 8,349 |
Segment Reconciling Items | |||
Segment Reporting Information [Line Items] | |||
Provision for income tax expense (benefit) | 43,433 | (10,318) | (18,683) |
Net investment gains (losses) | (1,178) | (3,737) | 4,399 |
Net derivative gains (losses) | (157,222) | 67,726 | 65,000 |
Other adjustments to net income | $ 34,307 | $ (34,508) | $ (16,018) |
Segment Information (Reconcilia
Segment Information (Reconciliation of Operating Revenues to Total Revenues) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 11,665 | $ 304,700 | $ 295,655 |
Annuities | |||
Segment Reporting Information [Line Items] | |||
Revenues | 106,762 | 125,308 | 139,102 |
Life | |||
Segment Reporting Information [Line Items] | |||
Revenues | 36,646 | 86,089 | 56,322 |
Corporate & Other | |||
Segment Reporting Information [Line Items] | |||
Revenues | 12,789 | 15,135 | 16,771 |
Segment Reconciling Items | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ (144,532) | $ 78,168 | $ 83,460 |
Segment Information (Total Asse
Segment Information (Total Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 8,486,305 | $ 7,633,046 |
Separate account assets | 5,021,633 | 4,758,449 |
Separate account liabilities | 5,021,633 | 4,758,449 |
Annuities | ||
Segment Reporting Information [Line Items] | ||
Total assets | 7,219,139 | 6,708,803 |
Separate account assets | 5,021,633 | 4,758,449 |
Separate account liabilities | 5,021,633 | 4,758,449 |
Life | ||
Segment Reporting Information [Line Items] | ||
Total assets | 662,546 | 342,592 |
Separate account assets | 0 | 0 |
Separate account liabilities | 0 | 0 |
Corporate & Other | ||
Segment Reporting Information [Line Items] | ||
Total assets | 604,620 | 581,651 |
Separate account assets | 0 | 0 |
Separate account liabilities | $ 0 | $ 0 |
Segment Information (Premiums,
Segment Information (Premiums, Universal Life and Investment-Type Policy Fees and Other Revenues by Major Product Groups) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Total premiums, universal life and investment-type product policy fees and other revenues | $ 83,738 | $ 182,931 | $ 173,312 |
Annuity products | |||
Segment Reporting Information [Line Items] | |||
Total premiums, universal life and investment-type product policy fees and other revenues | 63,813 | 112,018 | 130,167 |
Life insurance products | |||
Segment Reporting Information [Line Items] | |||
Total premiums, universal life and investment-type product policy fees and other revenues | $ 19,925 | $ 70,913 | $ 43,145 |
Segment Information Segment Inf
Segment Information Segment Information (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Number of segments | 2 |
Insurance (Insurance Liabilitie
Insurance (Insurance Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Insurance Liabilities [Line Items] | ||
Insurance liabilities comprised of future policy benefits, policyholder account balances and other policy-related balances | $ 2,030,109 | $ 1,836,642 |
Annuities | ||
Insurance Liabilities [Line Items] | ||
Insurance liabilities comprised of future policy benefits, policyholder account balances and other policy-related balances | 1,675,039 | 1,504,773 |
Life | ||
Insurance Liabilities [Line Items] | ||
Insurance liabilities comprised of future policy benefits, policyholder account balances and other policy-related balances | 346,084 | 322,319 |
Corporate & Other | ||
Insurance Liabilities [Line Items] | ||
Insurance liabilities comprised of future policy benefits, policyholder account balances and other policy-related balances | $ 8,986 | $ 9,550 |
Insurance (Guarantees Related t
Insurance (Guarantees Related to Annuity Contracts) (Details) - Variable Annuity - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Guaranteed Minimum Death Benefit | ||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | ||
Net Amount at Risk by Product and Guarantee, General Account Value | $ 5,026,927 | $ 4,763,943 |
Net Amount at Risk by Product and Guarantee, Separate Account Value | 5,020,107 | 4,753,638 |
Net amount at risk | $ 5,262 | $ 36,827 |
Average attained age of contractholders | 66 years | 66 years |
Annuitization Benefit [Member] | ||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | ||
Net Amount at Risk by Product and Guarantee, General Account Value | $ 4,149,482 | $ 3,969,485 |
Net Amount at Risk by Product and Guarantee, Separate Account Value | 4,149,482 | 3,968,482 |
Net amount at risk | $ 166,788 | $ 209,926 |
Average attained age of contractholders | 66 years | 65 years |
Insurance (Fund Groupings) (Det
Insurance (Fund Groupings) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Fund Groupings | $ 5,021,633 | $ 4,758,449 |
Equity | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Fund Groupings | 1,513,408 | 1,403,276 |
Balanced | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Fund Groupings | 3,099,888 | 2,945,952 |
Bond | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Fund Groupings | 359,929 | 359,993 |
Money Market | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Fund Groupings | $ 48,408 | $ 49,228 |
Insurance (Liabilities for Guar
Insurance (Liabilities for Guarantees) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net Amount at Risk by Product and Guarantee [Line Items] | ||||
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | $ 184,093 | $ 158,870 | $ 124,819 | $ 103,878 |
Liabilities for Guarantees on Long-Duration Contracts, Incurred Benefits | 25,234 | 34,610 | 21,179 | |
Liabilities for Guarantees on Long-Duration Contracts, Payment for Benefits | (11) | (559) | (238) | |
Variable Annuity Guarantees | Guaranteed Minimum Income Benefit | ||||
Net Amount at Risk by Product and Guarantee [Line Items] | ||||
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | 171,628 | 149,069 | 116,730 | 96,726 |
Liabilities for Guarantees on Long-Duration Contracts, Incurred Benefits | 22,559 | 32,338 | 20,004 | |
Liabilities for Guarantees on Long-Duration Contracts, Payment for Benefits | 0 | 1 | 0 | |
Variable Annuity Guarantees | Guaranteed Death Benefits | ||||
Net Amount at Risk by Product and Guarantee [Line Items] | ||||
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | 12,465 | 9,801 | 8,089 | 7,152 |
Liabilities for Guarantees on Long-Duration Contracts, Incurred Benefits | 2,675 | 2,272 | 1,175 | |
Liabilities for Guarantees on Long-Duration Contracts, Payment for Benefits | (11) | (560) | (238) | |
Net Ceded and Assumed Liabilities For Guarantees [Member] | ||||
Net Amount at Risk by Product and Guarantee [Line Items] | ||||
liabilities for guarantees on long duration contracts reinsurance recoverable incurred benefits net | 11,933 | 13,785 | 9,097 | |
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Net | 73,645 | 61,723 | 48,498 | 39,639 |
Liabilities for Guarantees on Long-Duration Contracts, Payment for Benefits | (11) | (560) | (238) | |
Net Ceded and Assumed Liabilities For Guarantees [Member] | Guaranteed Minimum Income Benefit | ||||
Net Amount at Risk by Product and Guarantee [Line Items] | ||||
liabilities for guarantees on long duration contracts reinsurance recoverable incurred benefits net | 9,386 | 11,570 | 7,433 | |
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Net | 60,876 | 51,490 | 39,920 | 32,487 |
Liabilities for Guarantees on Long-Duration Contracts, Payment for Benefits | 0 | 0 | 0 | |
Net Ceded and Assumed Liabilities For Guarantees [Member] | Guaranteed Death Benefits | ||||
Net Amount at Risk by Product and Guarantee [Line Items] | ||||
liabilities for guarantees on long duration contracts reinsurance recoverable incurred benefits net | 2,547 | 2,215 | 1,664 | |
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Net | 12,769 | 10,233 | 8,578 | 7,152 |
Liabilities for Guarantees on Long-Duration Contracts, Payment for Benefits | (11) | (560) | (238) | |
Net Liabilities For Guarantees [Member] | ||||
Net Amount at Risk by Product and Guarantee [Line Items] | ||||
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Net | 110,448 | 97,147 | 76,321 | 64,239 |
Liabilities for Guarantees on Long-Duration Contracts, Incurred Benefits | 13,301 | 20,825 | 12,082 | |
Liabilities for Guarantees on Long-Duration Contracts, Payment for Benefits | 0 | 1 | 0 | |
Net Liabilities For Guarantees [Member] | Guaranteed Minimum Income Benefit | ||||
Net Amount at Risk by Product and Guarantee [Line Items] | ||||
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Net | 110,752 | 97,579 | 76,810 | 64,239 |
Liabilities for Guarantees on Long-Duration Contracts, Incurred Benefits | 13,173 | 20,768 | 12,571 | |
Liabilities for Guarantees on Long-Duration Contracts, Payment for Benefits | 0 | 1 | 0 | |
Net Liabilities For Guarantees [Member] | Guaranteed Death Benefits | ||||
Net Amount at Risk by Product and Guarantee [Line Items] | ||||
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Net | (304) | (432) | (489) | $ 0 |
Liabilities for Guarantees on Long-Duration Contracts, Incurred Benefits | 128 | 57 | (489) | |
Liabilities for Guarantees on Long-Duration Contracts, Payment for Benefits | $ 0 | $ 0 | $ 0 |
Insurance (Insurance Liabilit47
Insurance (Insurance Liabilities Assumptions and Ratios - Narrative) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Minimum | |
Liability for Future Policy Benefit, by Product Segment [Line Items] | |
Interest rate range credited to policyholder account balances | 1.00% |
Maximum | |
Liability for Future Policy Benefit, by Product Segment [Line Items] | |
Interest rate range credited to policyholder account balances | 7.00% |
Nonparticipating Life Insurance Policy [Member] | Minimum | |
Liability for Future Policy Benefit, by Product Segment [Line Items] | |
Liability for Future Policy Benefits, Interest Rate Assumption | 3.00% |
Nonparticipating Life Insurance Policy [Member] | Maximum | |
Liability for Future Policy Benefit, by Product Segment [Line Items] | |
Liability for Future Policy Benefits, Interest Rate Assumption | 5.00% |
Fixed Annuity [Member] | Minimum | |
Liability for Future Policy Benefit, by Product Segment [Line Items] | |
Liability for Future Policy Benefits, Interest Rate Assumption | 3.00% |
Fixed Annuity [Member] | Maximum | |
Liability for Future Policy Benefit, by Product Segment [Line Items] | |
Liability for Future Policy Benefits, Interest Rate Assumption | 6.00% |
Deferred Policy Acquisition C48
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles (DAC and VOBA) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net [Abstract] | |||
Beginning Balance of DAC | $ 85,032 | $ 107,474 | $ 204,321 |
Capitalization of DAC | 17,089 | 4,976 | 4,768 |
Net investment gains (losses) of DAC and net derivative gains (losses) of DAC | (50,228) | 12,163 | 16,372 |
Other expenses of DAC | (10,182) | (11,155) | (87,443) |
Total amortization of DAC | 40,046 | (23,318) | (103,815) |
Unrealized investment gains (losses) of DAC | 11,200 | 4,100 | (2,200) |
Ending Balance of DAC | 130,967 | 85,032 | 107,474 |
Beginning Balance of VOBA | 141 | 40 | 51 |
Present Value of Future Insurance Profits, Amortization Expense, Realized Gain (Loss) | 0 | 0 | 5 |
Other expenses of VOBA | (49) | 101 | (16) |
Total amortization of VOBA | (49) | 101 | (11) |
Ending Balance of VOBA | 92 | 141 | 40 |
Balance at December 31, | $ 131,059 | $ 85,173 | $ 107,514 |
Deferred Policy Acquisition C49
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles (DAC and VOBA by Segment) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Segment Reporting Information [Line Items] | |||
DAC and VOBA | $ 131,059 | $ 85,173 | $ 107,514 |
Annuities | |||
Segment Reporting Information [Line Items] | |||
DAC and VOBA | 107,760 | 60,689 | |
Life | |||
Segment Reporting Information [Line Items] | |||
DAC and VOBA | 23,101 | 24,265 | |
Corporate & Other | |||
Segment Reporting Information [Line Items] | |||
DAC and VOBA | $ 198 | $ 219 |
Deferred Policy Acquisition C50
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles (Deferred Sales Inducements) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Insurance [Abstract] | ||||
Finite-Lived Intangible Assets, Net | $ 8,579 | $ 9,862 | $ 11,222 | $ 12,616 |
DSI | ||||
Balance at January 1, | 29,647 | 37,114 | 41,176 | |
Capitalization | 155 | 350 | 452 | |
Amortization | (479) | (7,017) | (5,014) | |
Unrealized investment gains (losses) | (2,400) | (800) | 500 | |
Balance at December 31, | $ 26,923 | $ 29,647 | $ 37,114 |
Deferred Policy Acquisition C51
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles (VODA ) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Insurance [Abstract] | |||
Balance at January 1, | $ 9,862 | $ 11,222 | $ 12,616 |
Amortization | (1,283) | (1,360) | (1,394) |
Balance at December 31, | 8,579 | 9,862 | 11,222 |
Accumulated amortization | $ 10,935 | $ 9,652 | $ 8,292 |
Deferred Policy Acquisition C52
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles (Estimated Future Amortization) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Estimated future amortization expense allocated to other expenses for VOBA [Abstract] | |
VOBA 2,018 | $ 46 |
VOBA 2,019 | 46 |
VOBA 2,020 | 0 |
VOBA 2,021 | 0 |
VOBA 2,022 | 0 |
Value of Distribution Agreements and Customer Relationships Acquired [Abstract] | |
VODA 2,018 | 1,184 |
VODA 2,019 | 1,073 |
VODA 2,020 | 956 |
VODA 2,021 | 841 |
VODA 2,022 | $ 730 |
Reinsurance (Effects of Reinsur
Reinsurance (Effects of Reinsurance on Earnings) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Premiums: | |||
Direct premiums | $ 93,196 | $ 109,733 | $ 122,110 |
Reinsurance ceded | (66,928) | (58,994) | (50,238) |
Net premiums | 26,268 | 50,739 | 71,872 |
Universal life and investment-type product policy fees: | |||
Direct universal life and investment-type product policy fees | 107,605 | 106,830 | 114,850 |
Reinsurance ceded | (3,869) | (3,830) | (3,945) |
Net universal life and investment-type product policy fees | 103,736 | 103,000 | 110,905 |
Other revenues: | |||
Direct other revenues | 13,016 | 12,494 | 12,754 |
Reinsurance ceded | (59,282) | 16,698 | (22,219) |
Net other revenues | (46,266) | 29,192 | (9,465) |
Policyholder benefits and claims: | |||
Direct policyholder benefits and claims | 105,551 | 128,420 | 138,574 |
Reinsurance ceded | (110,325) | (76,440) | (89,174) |
Net policyholder benefits and claims | (4,774) | 51,980 | 49,400 |
Other expenses: | |||
Total other expenses | $ 65,953 | $ 57,027 | $ 65,213 |
Reinsurance (Effects of Reins54
Reinsurance (Effects of Reinsurance on Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets: | |||
Premiums, reinsurance and other receivables | $ 572,609 | $ 354,939 | |
Deferred policy acquisition costs and value of business acquired | 131,059 | 85,173 | $ 107,514 |
Liabilities: | |||
Other Policyholder Funds | 12,733 | 7,285 | |
Other Liabilities | 471,130 | 112,441 | |
Direct | |||
Assets: | |||
Premiums, reinsurance and other receivables | 20,852 | 19,005 | |
Liabilities: | |||
Other Policyholder Funds | 12,733 | 7,285 | |
Other Liabilities | 21,643 | 10,637 | |
Ceded | |||
Assets: | |||
Premiums, reinsurance and other receivables | 551,757 | 335,934 | |
Liabilities: | |||
Other Policyholder Funds | 0 | 0 | |
Other Liabilities | $ 449,487 | $ 101,804 |
Reinsurance (Effects of Affilia
Reinsurance (Effects of Affiliated Reinsurance on Statements of Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Premiums: | |||
Reinsurance ceded | $ (66,928) | $ (58,994) | $ (50,238) |
Universal life and investment-type product policy fees: | |||
Reinsurance ceded | (3,869) | (3,830) | (3,945) |
Other revenues: | |||
Reinsurance ceded | (59,282) | 16,698 | (22,219) |
Policyholder benefits and claims: | |||
Reinsurance ceded | (110,325) | (76,440) | (89,174) |
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Amortization | 39,997 | (23,217) | (103,826) |
Affiliated Entity [Member] | Ceded | |||
Premiums: | |||
Reinsurance ceded | (51,944) | (44,259) | (37,119) |
Universal life and investment-type product policy fees: | |||
Reinsurance ceded | (3,680) | (3,645) | (3,784) |
Other revenues: | |||
Reinsurance ceded | (59,272) | 16,701 | (22,212) |
Policyholder benefits and claims: | |||
Reinsurance ceded | $ (99,990) | $ (71,948) | $ (76,410) |
Reinsurance (Effects of Affil56
Reinsurance (Effects of Affiliated Reinsurance on Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets: | |||
Premiums, reinsurance and other receivables | $ 572,609 | $ 354,939 | |
Deferred policy acquisition costs and value of business acquired | 131,059 | 85,173 | $ 107,514 |
Liabilities: | |||
Future policy benefits | 674,046 | 627,007 | |
Policyholder account balances | 1,343,330 | 1,202,350 | |
Other Liabilities | 471,130 | 112,441 | |
Ceded | |||
Assets: | |||
Premiums, reinsurance and other receivables | 551,757 | 335,934 | |
Liabilities: | |||
Other Liabilities | 449,487 | 101,804 | |
Ceded | Affiliated Entity [Member] | |||
Assets: | |||
Premiums, reinsurance and other receivables | 533,388 | 321,868 | |
Liabilities: | |||
Other Liabilities | $ 448,210 | $ 99,641 |
Reinsurance (Narrative) (Detail
Reinsurance (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Ceded Credit Risk [Line Items] | ||
Reinsurance recoverables | $ 17,100,000 | $ 11,900,000 |
Future policy benefits | 674,046,000 | 627,007,000 |
Other assets | 36,317,000 | 48,285,000 |
Five Largest Ceded Reinsurers [Member] | ||
Ceded Credit Risk [Line Items] | ||
Five largest reinsurers, reinsurance recoverables amount | $ 15,000,000 | $ 10,500,000 |
Five largest reinsurers, reinsurance recoverables percentage | 88.00% | 88.00% |
Ceded Credit Risk, Unsecured [Member] | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance recoverables | $ 17,000,000 | $ 11,900,000 |
Mortality Risk [Member] | ||
Reinsurance Retention Policy [Line Items] | ||
Reinsured risk percentage | 100.00% | |
Retention amount | $ 100,000 | |
Fixed Annuities [Member] | ||
Reinsurance Retention Policy [Line Items] | ||
Reinsured risk percentage | 100.00% | |
Living And Death Benefit Guarantees [Member] | ||
Reinsurance Retention Policy [Line Items] | ||
Reinsured risk percentage | 100.00% |
Reinsurance (Related Party Narr
Reinsurance (Related Party Narrative) (Details) - USD ($) | May 02, 2017 | Jan. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | May 01, 2017 | Jan. 01, 2017 | Nov. 30, 2016 |
Reinsurance Disclosures [Abstract] | |||||||||
Embedded Derivative, Fair Value of Embedded Derivative Liability | $ (24,000,000) | $ (40,000,000) | $ (24,000,000) | ||||||
Other Liabilities | 112,441,000 | 471,130,000 | 112,441,000 | ||||||
Premiums, reinsurance and other receivables | 354,939,000 | 572,609,000 | 354,939,000 | ||||||
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net | 85,173,000 | 131,059,000 | 85,173,000 | $ 107,514,000 | |||||
Other Assets | 48,285,000 | 36,317,000 | 48,285,000 | ||||||
Future policy benefits | 627,007,000 | 674,046,000 | 627,007,000 | ||||||
Reinsurance recoverables | 11,900,000 | 17,100,000 | 11,900,000 | ||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (48,940,000) | 132,562,000 | 25,083,000 | ||||||
Modified Coinsurance Basis Percent | 100.00% | ||||||||
Liabilities | 6,936,313,000 | 7,642,818,000 | 6,936,313,000 | ||||||
Ceded Premiums Earned | 66,928,000 | 58,994,000 | 50,238,000 | ||||||
Policyholder Benefits and Claims Incurred, Ceded | 110,325,000 | 76,440,000 | 89,174,000 | ||||||
Affiliated Entity [Member] | |||||||||
Reinsurance Disclosures [Abstract] | |||||||||
Deposit Contracts, Assets | 28,000,000 | 19,600,000 | 28,000,000 | ||||||
Deposit Contracts, Liabilities | 0 | ||||||||
Affiliated Entity [Member] | Ceded guaranteed minimum benefits | |||||||||
Reinsurance Disclosures [Abstract] | |||||||||
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net | (73,600,000) | 24,200,000 | 12,500,000 | ||||||
Embedded Derivative, Fair Value of Embedded Derivative Asset | 211,200,000 | 307,700,000 | 211,200,000 | ||||||
Affiliated Entity [Member] | Variable Annuities MLIC [Member] | |||||||||
Reinsurance Disclosures [Abstract] | |||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | $ 84,400,000 | ||||||||
Liabilities | $ 129,800,000 | ||||||||
Affiliated Entity [Member] | ModifiedCoInsMLIC [Member] | |||||||||
Reinsurance Disclosures [Abstract] | |||||||||
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net | (125,100,000) | 46,200,000 | $ 54,100,000 | ||||||
Embedded Derivative, Fair Value of Embedded Derivative Asset | 168,100,000 | 0 | 168,100,000 | ||||||
Affiliated Entity [Member] | SPDARecapture [Member] | |||||||||
Reinsurance Disclosures [Abstract] | |||||||||
Cash, Cash Equivalents, and Short-term Investments | 933,400,000 | 933,400,000 | $ 933,400,000 | ||||||
Premiums, reinsurance and other receivables | 922,600,000 | 922,600,000 | |||||||
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net | 22,900,000 | 22,900,000 | |||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 21,900,000 | ||||||||
Affiliated Entity [Member] | MRVTermRecapture [Member] | |||||||||
Reinsurance Disclosures [Abstract] | |||||||||
Other Liabilities | 158,100,000 | 158,100,000 | |||||||
Cash, Cash Equivalents, and Short-term Investments | 27,200,000 | 27,200,000 | |||||||
Premiums, reinsurance and other receivables | 93,700,000 | 93,700,000 | |||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 24,200,000 | ||||||||
Ceded Credit Risk, Unsecured [Member] | |||||||||
Reinsurance Disclosures [Abstract] | |||||||||
Reinsurance recoverables | 11,900,000 | 17,000,000 | 11,900,000 | ||||||
Ceded Credit Risk, Unsecured [Member] | Affiliated Entity [Member] | |||||||||
Reinsurance Disclosures [Abstract] | |||||||||
Reinsurance recoverables | $ 199,000,000 | $ 92,600,000 | $ 199,000,000 | ||||||
Metropolitan Life Insurance Company [Member] | Affiliated Entity [Member] | Life and Other [Member] | |||||||||
Reinsurance Disclosures [Abstract] | |||||||||
Cash, Cash Equivalents, and Short-term Investments | $ 25,600,000 | ||||||||
Premiums, reinsurance and other receivables | 22,400,000 | ||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | $ 2,100,000 | ||||||||
Brighthouse Life Insurance Company [Member] | Affiliated Entity [Member] | Life and Other [Member] | |||||||||
Reinsurance Disclosures [Abstract] | |||||||||
Other Liabilities | 22,700,000 | ||||||||
Premiums, reinsurance and other receivables | $ 24,700,000 | ||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 1,300,000 | ||||||||
Ceded Premiums Earned | 22,700,000 | ||||||||
Policyholder Benefits and Claims Incurred, Ceded | $ 24,700,000 |
Investments (Fixed Maturity and
Investments (Fixed Maturity and Equity Securities Available-For-Sale by Sector) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Available-for-sale Securities [Abstract] | ||
Cost or Amortized Cost | $ 2,165,134 | $ 1,870,654 |
Available-for-sale Securities, Debt Securities | 2,221,563 | 1,878,514 |
Fixed maturity securities | ||
Available-for-sale Securities [Abstract] | ||
Cost or Amortized Cost | 2,165,134 | 1,870,654 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 71,094 | 42,755 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 14,665 | 34,895 |
Gross Unrealized OTTI Loss | 0 | 0 |
Available-for-sale Securities, Debt Securities | 2,221,563 | 1,878,514 |
U.S. corporate | ||
Available-for-sale Securities [Abstract] | ||
Cost or Amortized Cost | 770,385 | 709,694 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 29,246 | 20,400 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 2,007 | 8,283 |
Gross Unrealized OTTI Loss | 0 | 0 |
Available-for-sale Securities, Debt Securities | 797,624 | 721,811 |
U.S. government and agency | ||
Available-for-sale Securities [Abstract] | ||
Cost or Amortized Cost | 535,757 | 410,504 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 17,023 | 9,560 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 5,717 | 13,519 |
Gross Unrealized OTTI Loss | 0 | 0 |
Available-for-sale Securities, Debt Securities | 547,063 | 406,545 |
Foreign corporate | ||
Available-for-sale Securities [Abstract] | ||
Cost or Amortized Cost | 304,650 | 237,412 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 8,168 | 2,998 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 3,704 | 8,070 |
Gross Unrealized OTTI Loss | 0 | 0 |
Available-for-sale Securities, Debt Securities | 309,114 | 232,340 |
RMBS | ||
Available-for-sale Securities [Abstract] | ||
Cost or Amortized Cost | 217,857 | 238,676 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 5,626 | 2,033 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 1,703 | 2,322 |
Gross Unrealized OTTI Loss | 0 | 0 |
Available-for-sale Securities, Debt Securities | 221,780 | 238,387 |
CMBS | ||
Available-for-sale Securities [Abstract] | ||
Cost or Amortized Cost | 197,931 | 177,719 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 3,533 | 2,724 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 1,043 | 1,487 |
Gross Unrealized OTTI Loss | 0 | 0 |
Available-for-sale Securities, Debt Securities | 200,421 | 178,956 |
State and political subdivision | ||
Available-for-sale Securities [Abstract] | ||
Cost or Amortized Cost | 64,056 | 52,739 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 6,596 | 4,345 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 366 | 764 |
Gross Unrealized OTTI Loss | 0 | 0 |
Available-for-sale Securities, Debt Securities | 70,286 | 56,320 |
ABS | ||
Available-for-sale Securities [Abstract] | ||
Cost or Amortized Cost | 58,665 | 26,695 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 305 | 152 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 98 | 177 |
Gross Unrealized OTTI Loss | 0 | 0 |
Available-for-sale Securities, Debt Securities | 58,872 | 26,670 |
Foreign government | ||
Available-for-sale Securities [Abstract] | ||
Cost or Amortized Cost | 15,833 | 17,215 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 597 | 543 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 27 | 273 |
Gross Unrealized OTTI Loss | 0 | 0 |
Available-for-sale Securities, Debt Securities | $ 16,403 | $ 17,485 |
Investments (Maturities of Fixe
Investments (Maturities of Fixed Maturity Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Amortized Cost, Due in one year or less | $ 40,231 | |
Amortized Cost, Due after one year through five years | 333,428 | |
Amortized Cost, Due after five years through ten years | 760,665 | |
Amortized Cost, Due after ten years | 556,357 | |
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis | 474,453 | |
Amortized cost of fixed maturity securities available-for-sale | 2,165,134 | $ 1,870,654 |
Estimated Fair Value, Due in one year or less | 40,633 | |
Estimated Fair Value, Due after one year through five years | 338,857 | |
Estimated Fair Value, Due after five years through ten years | 768,084 | |
Estimated Fair Value, Due after ten years | 592,916 | |
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | 481,073 | |
Available-for-sale Securities, Debt Securities | $ 2,221,563 | $ 1,878,514 |
Investments (Continuous Gross U
Investments (Continuous Gross Unrealized Losses for Fixed Maturity and Equity Securities Available-For-Sale) (Details) $ in Thousands | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Total number of securities in an unrealized loss position equal to or greater than 12 months | 58 | 35 |
Total number of securities in an unrealized loss position less than 12 months | 131 | 203 |
Fixed maturity securities | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | $ 519,239 | $ 947,335 |
Less than 12 Months Gross Unrealized Loss | 5,831 | 27,973 |
Equal to or Greater than 12 Months Estimated Fair Value | 265,776 | 52,129 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 8,834 | 6,922 |
U.S. corporate | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 118,514 | 250,559 |
Less than 12 Months Gross Unrealized Loss | 898 | 6,667 |
Equal to or Greater than 12 Months Estimated Fair Value | 46,372 | 17,745 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 1,109 | 1,616 |
U.S. government and agency | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 248,434 | 342,150 |
Less than 12 Months Gross Unrealized Loss | 2,895 | 13,519 |
Equal to or Greater than 12 Months Estimated Fair Value | 107,253 | 0 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 2,822 | 0 |
Foreign corporate | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 88,724 | 129,093 |
Less than 12 Months Gross Unrealized Loss | 1,540 | 3,541 |
Equal to or Greater than 12 Months Estimated Fair Value | 29,552 | 22,965 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 2,164 | 4,529 |
RMBS | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 24,060 | 137,470 |
Less than 12 Months Gross Unrealized Loss | 162 | 2,089 |
Equal to or Greater than 12 Months Estimated Fair Value | 38,454 | 6,822 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 1,541 | 233 |
CMBS | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 18,430 | 42,661 |
Less than 12 Months Gross Unrealized Loss | 176 | 1,068 |
Equal to or Greater than 12 Months Estimated Fair Value | 27,958 | 3,729 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 867 | 419 |
State and political subdivision | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 9,232 | 20,709 |
Less than 12 Months Gross Unrealized Loss | 110 | 764 |
Equal to or Greater than 12 Months Estimated Fair Value | 8,111 | 0 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 256 | 0 |
ABS | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 7,361 | 17,504 |
Less than 12 Months Gross Unrealized Loss | 23 | 177 |
Equal to or Greater than 12 Months Estimated Fair Value | 8,076 | 0 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 75 | 0 |
Foreign government | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 4,484 | 7,189 |
Less than 12 Months Gross Unrealized Loss | 27 | 148 |
Equal to or Greater than 12 Months Estimated Fair Value | 0 | 868 |
Equal to or Greater than 12 Months Gross Unrealized Loss | $ 0 | $ 125 |
Investments (Mortgage Loans by
Investments (Mortgage Loans by Portfolio Segment) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Investments, Debt and Equity Securities [Abstract] | ||
Commercial mortgage loans | $ 276,626 | $ 286,002 |
Percentage of loans receivable on commercial mortgage loans | 70.00% | 70.40% |
Agricultural mortgage loans | $ 119,984 | $ 121,858 |
Percentage of loans receivable on agricultural mortgage loans | 30.40% | 30.00% |
Subtotal | $ 396,610 | $ 407,860 |
Percentage of loans receivable on subtotal | 100.40% | 100.40% |
Valuation allowances | $ (1,747) | $ (1,775) |
Percentage of loans receivable on valuation allowances | (0.40%) | (0.40%) |
Mortgage Loans on Real Estate | $ 394,863 | $ 406,085 |
Percentage of total mortgage loans, net | 100.00% | 100.00% |
Investments (Credit Quality of
Investments (Credit Quality of Commercial Mortgage Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 276,626 | $ 286,002 |
% of Total | 100.00% | 100.00% |
Less than 65% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 260,642 | $ 276,324 |
% of Total | 94.20% | 96.60% |
65% to 75% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 12,957 | $ 9,678 |
% of Total | 4.70% | 3.40% |
76% to 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 3,027 | |
% of Total | 1.10% | |
Greater than 1.20x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 259,201 | $ 269,389 |
Greater than 1.20x | Less than 65% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 243,217 | 259,711 |
Greater than 1.20x | 65% to 75% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 12,957 | 9,678 |
Greater than 1.20x | 76% to 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 3,027 | |
1.00x - 1.20x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 17,425 | 15,614 |
1.00x - 1.20x | Less than 65% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 17,425 | 15,614 |
1.00x - 1.20x | 65% to 75% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 0 | 0 |
1.00x - 1.20x | 76% to 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 0 | |
Less than 1.00x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 0 | 999 |
Less than 1.00x | Less than 65% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 0 | 999 |
Less than 1.00x | 65% to 75% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 0 | $ 0 |
Less than 1.00x | 76% to 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 0 |
Investments (Credit Quality o64
Investments (Credit Quality of Agricultural and Residential Mortgage Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Agricultural Mortgage Loans - by Credit Quality Indicator: | ||
Recorded investment in Mortgage Loan | $ 119,984 | $ 121,858 |
% of Total | 100.00% | 100.00% |
Less than 65% | ||
Agricultural Mortgage Loans - by Credit Quality Indicator: | ||
Recorded investment in Mortgage Loan | $ 119,077 | $ 119,974 |
% of Total | 99.20% | 98.40% |
65% to 75% | ||
Agricultural Mortgage Loans - by Credit Quality Indicator: | ||
Recorded investment in Mortgage Loan | $ 907 | $ 1,884 |
% of Total | 0.80% | 1.60% |
Investments (Net Unrealized Inv
Investments (Net Unrealized Investment Gains Losses) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Components of net unrealized investment gains (losses) included in accumulated other comprehensive loss | |||
Fixed maturity securities | $ 56,432 | $ 7,862 | $ 6,028 |
Derivatives | 471 | 4,718 | 3,189 |
Subtotal | 56,903 | 12,580 | 9,217 |
DAC, VOBA and DSI | (19,400) | (5,800) | (900) |
Deferred income tax benefit (expense) | (7,875) | (2,373) | (2,911) |
Net unrealized investment gains (losses) | $ 29,628 | $ 4,407 | $ 5,406 |
Investments (Changes in Net Unr
Investments (Changes in Net Unrealized Investment Gains Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Changes In Net Unrealized Investment Gains Losses Included In Accumulated Other Comprehensive Loss [Abstract] | |||
Balance at January 1, | $ 4,407 | $ 5,406 | $ 39,591 |
Unrealized investment gains (losses) during the year | 44,323 | 3,363 | (55,293) |
Unrealized investment gains (losses) relating to [Abstract] | |||
DAC, VOBA and DSI | (13,600) | (4,900) | 2,700 |
Deferred income tax benefit (expense) | (5,502) | 538 | 18,408 |
Balance at December 31, | 29,628 | 4,407 | 5,406 |
Change in net unrealized investment gains (losses) | $ 25,221 | $ (999) | $ (34,185) |
Investments (Invested Assets on
Investments (Invested Assets on Deposit, Held In Trust and Pledged as Collateral) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Investments, Debt and Equity Securities [Abstract] | |||
Invested assets on deposit | $ 1,549 | $ 1,507 | |
Invested Assets Pledged As Collateral | $ 707 | 0 | |
Assets On Deposit And Pledged As Collateral | $ 2,256 | $ 1,507 |
Investments (Unconsolidated Var
Investments (Unconsolidated Variable Interest Entities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | $ 437,800 | $ 449,897 |
Carrying Amount Liability | 437,800 | 449,897 |
Structured Securities [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | 431,406 | 444,013 |
Carrying Amount Liability | 431,406 | 444,013 |
Foreign Corporate Debt Securities [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | 6,394 | 5,884 |
Carrying Amount Liability | $ 6,394 | $ 5,884 |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net Investment Income [Line Items] | |||
Less: Investment expenses | $ 3,156 | $ 1,958 | $ 1,468 |
Net investment income | 86,327 | 57,780 | 52,944 |
Securities Investment | |||
Net Investment Income [Line Items] | |||
Gross Investment Income, Operating | 89,483 | 59,738 | 54,412 |
Fixed maturity securities | |||
Net Investment Income [Line Items] | |||
Gross Investment Income, Operating | 71,779 | 50,386 | 47,069 |
Mortgage loans | |||
Net Investment Income [Line Items] | |||
Gross Investment Income, Operating | 16,665 | 8,734 | 6,904 |
Cash, cash equivalents and short-term investments | |||
Net Investment Income [Line Items] | |||
Gross Investment Income, Operating | 261 | 102 | 38 |
Other | |||
Net Investment Income [Line Items] | |||
Gross Investment Income, Operating | $ 778 | $ 516 | $ 401 |
Investments (Components of Net
Investments (Components of Net Investment Gains Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Marketable Securities, Gain (Loss) [Abstract] | |||
Fixed maturity securities — net gains (losses) on sales and disposals | $ (1,749) | $ (1,884) | $ 4,547 |
Equity securities — net gains (losses) on sales and disposals | 0 | 6 | 0 |
Other net investment gains (losses): | |||
Mortgage loans | (42) | (1,129) | (146) |
Other | 613 | 140 | (2) |
Total net investment gains (losses) | (1,178) | (3,737) | 4,399 |
Fixed maturity securities | |||
Gain (Loss) on Investments [Line Items] | |||
Total OTTI losses recognized in earnings | 0 | (870) | 0 |
Net investment gains (losses) | (1,749) | (2,754) | 4,547 |
Industrial | |||
Gain (Loss) on Investments [Line Items] | |||
Total OTTI losses recognized in earnings | $ 0 | $ (870) | $ 0 |
Investments (Sales or Disposals
Investments (Sales or Disposals and Impairments of Fixed Maturity and Equity Securities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fixed maturity securities | |||
Components of Sales or Disposals of Fixed Maturity and Equity Securities | |||
Proceeds | $ 462,993 | $ 74,657 | $ 292,993 |
Gross investment gains | 1,879 | 1,006 | 8,204 |
Gross investment losses | (3,628) | (2,890) | (3,657) |
Total OTTI losses recognized in earnings | 0 | (870) | 0 |
Net investment gains (losses) | (1,749) | (2,754) | 4,547 |
Equity Securities [Member] | |||
Components of Sales or Disposals of Fixed Maturity and Equity Securities | |||
Proceeds | 0 | 183 | 0 |
Gross investment gains | 0 | 6 | 0 |
Gross investment losses | 0 | 0 | 0 |
Total OTTI losses recognized in earnings | 0 | 0 | 0 |
Net investment gains (losses) | $ 0 | $ 6 | $ 0 |
Investments (Fixed Maturity a72
Investments (Fixed Maturity and Equity Securities Available-For-Sale - Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Debt Securities | $ 2,221,563 | $ 1,878,514 |
Non-Income Producing Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | $ 0 | $ 0 |
Investments (Evaluation of Avai
Investments (Evaluation of Available-For-Sale Securities for OTTI and Evaluating Temporarily Impaired AFS Securities - Narrative) (Details) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | |
Fixed maturities available-for-sale with gross unrealized loss of equal to or greater than stated percentage | 20.00% |
Fixed maturity securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Available-for-sale Securities, Change in Net Unrealized Holding Gain (Loss) before Taxes | $ 20,200,000 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 14,700,000 |
Twenty Percent Or More [Member] | Six Months Or Greater [Member] | Fixed maturity securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ 0 |
Investments (Mortgage Loans - N
Investments (Mortgage Loans - Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)Contracts | Dec. 31, 2016USD ($)Contracts | Dec. 31, 2015USD ($) | |
Financing Receivable, Recorded Investment [Line Items] | |||
Percentage of Mortgage Loans Classified as Performing | 100.00% | 100.00% | |
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | 0 | 0 | |
Commercial Loan [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable Number of Contract of Recorded Investment Past Due | 0 | 0 | |
Loans and Leases Receivable, Number of Contract, Nonperforming, Nonaccrual of Interest | 0 | 0 | |
Agricultural Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable Number of Contract of Recorded Investment Past Due | 0 | 0 | |
Loans and Leases Receivable, Number of Contract, Nonperforming, Nonaccrual of Interest | 0 | 0 | |
Affiliated Entity [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Significant Purchases | $ | $ 22.2 | $ 100.2 | $ 44.9 |
Related Party Transaction, Amounts of Transaction | $ | $ 58.5 | $ 63.7 | $ 30.3 |
Investments (Cash Equivalents -
Investments (Cash Equivalents - Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Investments, Debt and Equity Securities [Abstract] | ||
Cash equivalents | $ 60.7 | $ 9.2 |
Investments (Concentrations of
Investments (Concentrations of Credit Risk - Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | ||
Securities holdings exposure in single issuer greater than stated percentage of Company's equity | 10.00% | |
Investments in any counterparty that were greater than 10% of equity | $ 0 | $ 0 |
Investments (Consolidated Varia
Investments (Consolidated Variable Interest Entities - Narrative) (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | ||
Variable interest, consoldidated carrying amount assets and liabilities net | $ 0 | $ 0 |
Investments (Net Investment Gai
Investments (Net Investment Gains Losses - Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |||
Foreign Currency Transaction Gain (Loss), Realized | $ 467 | $ (54) | $ 458 |
Investments (Related Party Inve
Investments (Related Party Investment Transactions - Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Related party net investment income | $ 64 | ||
Related party investment administrative services | $ 38,000 | 19,900 | $ 30,400 |
Affiliated Entity [Member] | |||
Related Party Transaction [Line Items] | |||
Assets Transferred To Affiliates, Estimated Fair Value | 1,500 | ||
Transfers of Financial Assets Accounted for as Sale, Amortized Cost of Assets Obtained as Proceeds | 1,400 | ||
Metlife Investment Advisors, LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Related party investment administrative services | $ 2,800 | $ 1,900 | $ 1,400 |
Derivatives (Primary Risks) (De
Derivatives (Primary Risks) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | $ 86,943 | $ 47,993 |
Estimated Fair Value Assets | 3,784 | 8,656 |
Estimated Fair Value Liabilities | 1,611 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 16,636 | 14,063 |
Estimated Fair Value Assets | 2,213 | 3,709 |
Estimated Fair Value Liabilities | 254 | 0 |
Cash Flow Hedging [Member] | Derivatives Designated as Hedging Instruments | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 70,307 | 33,930 |
Estimated Fair Value Assets | 1,571 | 4,947 |
Estimated Fair Value Liabilities | $ 1,357 | $ 0 |
Derivatives Derivatives (Earned
Derivatives Derivatives (Earned Income on Derivatives - Narrative) (Details) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investment Income [Member] | Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Interest Income (Expense), Nonoperating, Net | $ 604 | $ 581 | $ 394 |
Net Derivative Gains (Losses) | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Interest Income (Expense), Nonoperating, Net | $ 326 | $ 279 | $ 215 |
Derivatives Derivatives NQ, CF,
Derivatives Derivatives NQ, CF, FV (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | $ 373,000 | $ (801,000) | $ (488,000) |
Gains Losses Deferred In Accumulated Other Comprehensive Income Loss On Derivatives Effective Portion | (4,257,000) | 1,584,000 | 2,760,000 |
Gain (Loss) on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring, Net | 0 | 49 | 0 |
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | $ 471 | 4,700 | |
Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cash Flow Hedge Ineffectiveness is Immaterial | not significant | ||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | $ 0 | (44,000) | (32,000) |
Gains Losses Deferred In Accumulated Other Comprehensive Income Loss On Derivatives Effective Portion | (4,257,000) | 1,584,000 | 2,760,000 |
Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 373,000 | (757,000) | (456,000) |
Gains Losses Deferred In Accumulated Other Comprehensive Income Loss On Derivatives Effective Portion | 0 | 0 | 0 |
Net Derivative Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | (157,915,000) | 68,248,000 | 65,273,000 |
Net Derivative Gains (Losses) | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | (9,000) | 55,000 | 0 |
Net Derivative Gains (Losses) | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | (157,906,000) | 68,193,000 | 65,273,000 |
Net Embedded Derivatives | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | 0 | 0 |
Gains Losses Deferred In Accumulated Other Comprehensive Income Loss On Derivatives Effective Portion | 0 | 0 | 0 |
Net Embedded Derivatives | Net Derivative Gains (Losses) | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | (156,297,000) | 66,079,000 | 63,716,000 |
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | (44,000) | (32,000) |
Gains Losses Deferred In Accumulated Other Comprehensive Income Loss On Derivatives Effective Portion | (4,257,000) | 1,584,000 | 2,760,000 |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 373,000 | (757,000) | (456,000) |
Gains Losses Deferred In Accumulated Other Comprehensive Income Loss On Derivatives Effective Portion | 0 | 0 | 0 |
Foreign Exchange Contract [Member] | Net Derivative Gains (Losses) | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | (9,000) | 55,000 | 0 |
Foreign Exchange Contract [Member] | Net Derivative Gains (Losses) | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | $ (1,609,000) | $ 2,114,000 | $ 1,557,000 |
Derivatives (Net Derivative Gai
Derivatives (Net Derivative Gains Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Components of Net Derivatives Gains (Losses) | |||
Total net derivative gains (losses) | $ (157,222) | $ 67,726 | $ 65,000 |
Derivatives (Gains Losses Recog
Derivatives (Gains Losses Recognized in Income Not Designated or Qualifying) (Details) - Net Derivative Gains (Losses) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivatives Gains (Losses) Recognized for Derivatives | $ (157,915) | $ 68,248 | $ 65,273 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivatives Gains (Losses) Recognized for Derivatives | $ (157,906) | $ 68,193 | $ 65,273 |
Derivatives (Estimated Fair Val
Derivatives (Estimated Fair Value of Derivatives Assets and Liabilities after Master Netting Agreements and Cash) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Excluding Accruals | $ 3,903 | $ 8,850 |
Derivative Liability, Fair Value, Gross Liability Excluding Accruals | 1,482 | 0 |
Amounts offset in the consolidated balance sheets, Assets | 0 | 0 |
Amounts offset in the consolidated balance sheets, Liabilities | 0 | 0 |
Net amount of derivative assets after application of master netting agreements and cash collateral | 54 | 178 |
Net amount of derivative liabilities after application of master netting agreements and cash collateral | 0 | 0 |
Estimated fair value of derivative assets presented in the consolidated balance sheets | 3,903 | 8,850 |
Estimated fair value of derivative liabilities presented in the consolidated balance sheets | 1,482 | 0 |
Over the Counter [Member] | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Excluding Accruals | 3,903 | 8,850 |
Derivative Liability, Fair Value, Gross Liability Excluding Accruals | 1,482 | 0 |
Cash collateral on derivative assets | (2,367) | (8,672) |
Cash collateral on derivative liabilities | 0 | 0 |
Securities collateral on derivative assets | 0 | 0 |
Securities collateral on derivative liabilities | 0 | 0 |
Derivative Asset, Not Offset, Policy Election Deduction | (1,482) | 0 |
Derivative Liability, Not Offset, Policy Election Deduction | $ (1,482) | $ 0 |
Derivatives Derivatives (Credit
Derivatives Derivatives (Credit Risk on Freestanding Derivatives) (Details) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Credit Derivatives [Line Items] | ||
Derivative, Collateral, Obligation to Return Securities | $ 0 | |
Derivative assets | $ 3,784 | 8,656 |
Derivative, Collateral, Obligation to Return Cash | 3,000 | 270 |
Accrued Liabilities [Member] | ||
Credit Derivatives [Line Items] | ||
Derivative assets | 119 | 194 |
Over the Counter [Member] | ||
Credit Derivatives [Line Items] | ||
Derivative, Collateral, Obligation to Return Securities | 0 | 0 |
Derivative, Collateral, Right to Reclaim Securities | $ 1,000 | $ 0 |
Derivatives (Embedded Derivativ
Derivatives (Embedded Derivatives) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | |||
Embedded Derivative, Fair Value of Embedded Derivative Liability | $ (40,000) | $ (24,000) | |
Ceded guaranteed minimum benefits | Premiums, reinsurance and other receivables | |||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | |||
Embedded Derivative, Fair Value of Embedded Derivative Asset | 307,698 | 379,297 | |
Direct guaranteed minimum benefits | Policyholder account balances | |||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | |||
Embedded Derivative, Fair Value of Embedded Derivative Liability | (51,130) | (23,740) | |
Other Embedded Derivatives [Member] | Policyholder account balances | |||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | |||
Embedded Derivative, Fair Value of Embedded Derivative Liability | 11,000 | 0 | |
Net derivative gains (losses) | |||
Derivatives, Fair Value [Line Items] | |||
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net | $ (156,297) | $ 66,079 | $ 63,716 |
Derivatives (Changes in Estimat
Derivatives (Changes in Estimated Fair Value Related to Embedded Derivatives) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net derivative gains (losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net derivatives gains (losses) | $ (156,297) | $ 66,079 | $ 63,716 |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivatives, Fair Value [Line Items] | |||
Derivative, Collateral, Obligation to Return Securities | $ 0 | ||
Derivative assets | $ 3,784,000 | 8,656,000 | |
Derivative liabilities | 1,611,000 | 0 | |
Derivative, Collateral, Obligation to Return Cash | 3,000,000 | 270,000 | |
Customer Securities for which Entity has Right to Sell or Repledge, Fair Value of Securities Sold or Repledged | 0 | ||
Derivative, Net Liability Position, Aggregate Fair Value | 0 | 0 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring, Net | 0 | 49,000 | $ 0 |
Gains Losses Deferred In Accumulated Other Comprehensive Income Loss On Derivatives Effective Portion | (4,257,000,000) | 1,584,000,000 | 2,760,000,000 |
Derivative Instrument Detail [Abstract] | |||
Accumulated Other Comprehensive Income (Loss) | 471,000 | 4,700,000 | |
Nonperformance Risk [Member] | Direct And Assumed Guaranteed Minimum Benefit [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Embedded derivatives gains (losses) | 466,000 | (100,000) | 1,400,000 |
Nonperformance Risk [Member] | Ceded guaranteed minimum benefits | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Embedded derivatives gains (losses) | (24,700,000) | (19,000,000) | (2,600,000) |
Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains Losses Deferred In Accumulated Other Comprehensive Income Loss On Derivatives Effective Portion | (4,257,000,000) | 1,584,000,000 | 2,760,000,000 |
Designated as Hedging Instrument [Member] | Currency Swap [Member] | Cash Flow Hedging [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | 1,571,000 | 4,947,000 | |
Derivative liabilities | 1,357,000 | 0 | |
Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains Losses Deferred In Accumulated Other Comprehensive Income Loss On Derivatives Effective Portion | 0 | 0 | 0 |
Not Designated as Hedging Instrument [Member] | Currency Swap [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | 2,213,000 | 3,709,000 | |
Derivative liabilities | 254,000 | 0 | |
Accrued Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | 119,000 | 194,000 | |
Over the Counter [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Collateral, Obligation to Return Securities | 0 | 0 | |
Derivative Instrument Detail [Abstract] | |||
Derivative, Collateral, Right to Reclaim Securities | 1,000,000 | 0 | |
Investment Income [Member] | Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Interest Income (Expense), Nonoperating, Net | 604,000 | 581,000 | 394,000 |
Net derivative gains (losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Embedded derivatives gains (losses) | (156,297,000) | 66,079,000 | 63,716,000 |
Net derivative gains (losses) | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Interest Income (Expense), Nonoperating, Net | $ 326,000 | $ 279,000 | $ 215,000 |
Fair Value (Recurring Fair Valu
Fair Value (Recurring Fair Value Measurements) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | $ 2,221,563 | $ 1,878,514 |
Derivative Asset, Fair Value, Gross Asset | 3,784 | 8,656 |
Separate account assets | 5,021,633 | 4,758,449 |
Liabilities [Abstract] | ||
Derivative liabilities | 1,611 | 0 |
Net embedded derivatives within liability host contracts | (40,000) | (24,000) |
Recurring | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 2,221,563 | 1,878,514 |
Net embedded derivatives within asset host contracts | 307,698 | 379,297 |
Separate account assets | 5,021,633 | 4,758,449 |
Total assets | 7,554,678 | 7,024,916 |
Liabilities [Abstract] | ||
Net embedded derivatives within liability host contracts | (39,935) | (23,740) |
Total liabilities | (38,324) | (23,740) |
Recurring | Foreign currency exchange rate | ||
Assets [Abstract] | ||
Derivative Asset, Fair Value, Gross Asset | 3,784 | 8,656 |
Liabilities [Abstract] | ||
Derivative liabilities | 1,611 | 0 |
Recurring | U.S. corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 797,624 | 721,811 |
Recurring | US Treasury and Government [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 547,063 | 406,545 |
Recurring | RMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 221,780 | 238,387 |
Recurring | Foreign corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 309,114 | 232,340 |
Recurring | CMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 200,421 | 178,956 |
Recurring | State and political subdivision | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 70,286 | 56,320 |
Recurring | ABS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 58,872 | 26,670 |
Recurring | Foreign government | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 16,403 | 17,485 |
Recurring | Level 1 | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 420,084 | 289,186 |
Net embedded derivatives within asset host contracts | 0 | 0 |
Separate account assets | 0 | 0 |
Total assets | 420,084 | 289,186 |
Liabilities [Abstract] | ||
Net embedded derivatives within liability host contracts | 0 | 0 |
Total liabilities | 0 | 0 |
Recurring | Level 1 | Foreign currency exchange rate | ||
Assets [Abstract] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 1 | U.S. corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 1 | US Treasury and Government [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 420,084 | 289,186 |
Recurring | Level 1 | RMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 1 | Foreign corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 1 | CMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 1 | State and political subdivision | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 1 | ABS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 1 | Foreign government | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 2 | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 1,685,972 | 1,485,614 |
Net embedded derivatives within asset host contracts | 0 | 0 |
Separate account assets | 5,021,633 | 4,758,449 |
Total assets | 6,711,389 | 6,252,719 |
Liabilities [Abstract] | ||
Net embedded derivatives within liability host contracts | 0 | 0 |
Total liabilities | 1,611 | 0 |
Recurring | Level 2 | Foreign currency exchange rate | ||
Assets [Abstract] | ||
Derivative Asset, Fair Value, Gross Asset | 3,784 | 8,656 |
Liabilities [Abstract] | ||
Derivative liabilities | 1,611 | 0 |
Recurring | Level 2 | U.S. corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 750,891 | 681,406 |
Recurring | Level 2 | US Treasury and Government [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 126,979 | 117,359 |
Recurring | Level 2 | RMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 207,338 | 217,091 |
Recurring | Level 2 | Foreign corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 259,897 | 200,454 |
Recurring | Level 2 | CMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 195,306 | 173,763 |
Recurring | Level 2 | State and political subdivision | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 70,286 | 56,320 |
Recurring | Level 2 | ABS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 58,872 | 21,736 |
Recurring | Level 2 | Foreign government | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 16,403 | 17,485 |
Recurring | Level 3 | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 115,507 | 103,714 |
Net embedded derivatives within asset host contracts | 307,698 | 379,297 |
Separate account assets | 0 | 0 |
Total assets | 423,205 | 483,011 |
Liabilities [Abstract] | ||
Net embedded derivatives within liability host contracts | (39,935) | (23,740) |
Total liabilities | (39,935) | (23,740) |
Recurring | Level 3 | Foreign currency exchange rate | ||
Assets [Abstract] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 3 | U.S. corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 46,733 | 40,405 |
Recurring | Level 3 | US Treasury and Government [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 3 | RMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 14,442 | 21,296 |
Recurring | Level 3 | Foreign corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 49,217 | 31,886 |
Recurring | Level 3 | CMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 5,115 | 5,193 |
Recurring | Level 3 | State and political subdivision | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 3 | ABS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 4,934 |
Recurring | Level 3 | Foreign government | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | $ 0 | $ 0 |
Fair Value (Quantitative Inform
Fair Value (Quantitative Information) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Embedded derivatives direct and ceded guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Utilization rates | 0.00% | 0.00% |
Withdrawal rates | 0.25% | 0.25% |
Long-term equity volatilities | 17.40% | 17.40% |
Nonperformance risk spread | 0.64% | 0.04% |
Embedded derivatives direct and ceded guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | Durations 1 - 10 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Lapse Rate | 0.25% | 0.25% |
Embedded derivatives direct and ceded guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | Durations 11 - 20 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Lapse Rate | 2.00% | 2.00% |
Embedded derivatives direct and ceded guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | Durations 21 - 116 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Lapse Rate | 2.00% | 2.00% |
Embedded derivatives direct and ceded guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | Ages 0 - 40 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Mortality Rate | 0.00% | 0.00% |
Embedded derivatives direct and ceded guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | Ages 41 - 60 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Mortality Rate | 0.04% | 0.04% |
Embedded derivatives direct and ceded guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | Ages 61 – 115 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Mortality Rate | 0.26% | 0.26% |
Embedded derivatives direct and ceded guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Utilization rates | 25.00% | 25.00% |
Withdrawal rates | 10.00% | 10.00% |
Long-term equity volatilities | 25.00% | 25.00% |
Nonperformance risk spread | 1.43% | 0.57% |
Embedded derivatives direct and ceded guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | Durations 1 - 10 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Lapse Rate | 100.00% | 100.00% |
Embedded derivatives direct and ceded guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | Durations 11 - 20 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Lapse Rate | 100.00% | 100.00% |
Embedded derivatives direct and ceded guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | Durations 21 - 116 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Lapse Rate | 100.00% | 100.00% |
Embedded derivatives direct and ceded guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | Ages 0 - 40 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Mortality Rate | 0.09% | 0.09% |
Embedded derivatives direct and ceded guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | Ages 41 - 60 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Mortality Rate | 0.65% | 0.65% |
Embedded derivatives direct and ceded guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | Ages 61 – 115 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Mortality Rate | 100.00% | 100.00% |
U.S. corporate and foreign corporate | Minimum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Offered Quotes Matrix Pricing | $ 98 | $ 94 |
Quoted prices | 87 | 75 |
U.S. corporate and foreign corporate | Maximum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Offered Quotes Matrix Pricing | 142 | 136 |
Quoted prices | 109 | 110 |
U.S. corporate and foreign corporate | Weighted Average | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Offered Quotes Matrix Pricing | 108 | 107 |
Quoted prices | 99 | 97 |
CMBS | Minimum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Quoted prices | 104 | |
CMBS | Maximum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Quoted prices | 104 | |
CMBS | Weighted Average | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Quoted prices | 104 | |
RMBS | Minimum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Quoted prices | 70 | 56 |
RMBS | Maximum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Quoted prices | 101 | 111 |
RMBS | Weighted Average | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Quoted prices | $ 85 | $ 86 |
Fair Value (Unobservable Input
Fair Value (Unobservable Input Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net Embedded Derivatives | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Balance at January 1, | $ 403,037 | $ 360,381 | |
Total realized/unrealized gains (losses) included in net income (loss) | (156,297) | 66,079 | $ 63,716 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 | 0 |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 100,893 | (23,423) | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Balance at December 31, | 347,633 | 403,037 | 360,381 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (141,133) | 71,709 | 67,551 |
U.S. corporate and foreign corporate | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at January 1, | 72,291 | 55,189 | |
Total realized/unrealized gains (losses) included in net income (loss) | 3 | (64) | 79 |
Total realized/unrealized gains (losses) included in AOCI | 5,969 | (1,769) | (1,849) |
Purchases | 26,542 | 21,260 | |
Sales | (2,320) | (462) | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | (6,535) | (1,863) | |
Balance at December 31, | 95,950 | 72,291 | 55,189 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 1 | (64) | 23 |
Structured securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at January 1, | 31,423 | 13,862 | |
Total realized/unrealized gains (losses) included in net income (loss) | 415 | 249 | 83 |
Total realized/unrealized gains (losses) included in AOCI | 1,051 | 152 | 55 |
Purchases | 0 | 23,916 | |
Sales | (8,398) | (1,901) | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | (4,934) | (4,855) | |
Balance at December 31, | 19,557 | 31,423 | 13,862 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | $ 441 | $ 249 | $ 83 |
Fair Value (Financial Instrumen
Fair Value (Financial Instruments Carried at Other Than Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Liabilities | ||
Separate account liabilities | $ 5,021,633 | $ 4,758,449 |
Estimated Fair Value | ||
Assets | ||
Mortgage loans | 395,894 | 404,079 |
Premiums, reinsurance and other receivables | 20,628 | 32,367 |
Liabilities | ||
Policyholder account balances | 1,140,886 | 1,283,338 |
Estimated Fair Value | Level 1 | ||
Assets | ||
Mortgage loans | 0 | 0 |
Premiums, reinsurance and other receivables | 0 | 0 |
Liabilities | ||
Policyholder account balances | 0 | 0 |
Estimated Fair Value | Level 2 | ||
Assets | ||
Mortgage loans | 0 | 0 |
Premiums, reinsurance and other receivables | 900 | 2,095 |
Liabilities | ||
Policyholder account balances | 0 | 0 |
Estimated Fair Value | Level 3 | ||
Assets | ||
Mortgage loans | 395,894 | 404,079 |
Premiums, reinsurance and other receivables | 19,728 | 30,272 |
Liabilities | ||
Policyholder account balances | 1,140,886 | 1,283,338 |
Carrying Value | ||
Assets | ||
Mortgage loans | 394,863 | 406,085 |
Premiums, reinsurance and other receivables | 20,489 | 30,122 |
Liabilities | ||
Policyholder account balances | $ 1,154,733 | $ 1,214,186 |
Fair Value Fair Value (Transfer
Fair Value Fair Value (Transfers Between Levels) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value (Transfers Between Levels) [Abstract] | ||
Fair Value Assets And Liabilities Transferred Between Levels 1 And Levels 2 | $ 0 | $ 0 |
Equity (Statutory Income) (Deta
Equity (Statutory Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Equity [Abstract] | |||
Statutory capital and surplus | $ 294,298 | $ 195,824 | |
Statutory net income (loss) | $ 22,166 | $ (87,290) | $ 17,194 |
Equity (Components of Accumulat
Equity (Components of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 0 | ||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 51,785 | $ 90,410 | $ 23,095 |
Balance beginning of period | 4,407 | 5,406 | 39,591 |
OCI before reclassifications | 29,000 | (4,193) | (48,032) |
Deferred income tax benefit (expense) | (10,150) | 1,468 | 16,812 |
AOCI before reclassifications, net of income tax | 23,257 | 2,681 | 8,371 |
Amounts reclassified from AOCI | 1,723 | 2,656 | (4,561) |
Deferred income tax benefit (expense) | 4,648 | (930) | 1,596 |
Amounts reclassified from AOCI, net of income tax | 6,371 | 1,726 | (2,965) |
Balance end of period | 29,628 | 4,407 | 5,406 |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 5,252 | ||
Unrealized Investment Gains (Losses), Net of Related Offsets | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance beginning of period | 1,340 | 3,333 | 39,312 |
OCI before reclassifications | 33,257 | (5,777) | (50,792) |
Deferred income tax benefit (expense) | (11,640) | 2,022 | 17,778 |
AOCI before reclassifications, net of income tax | 22,957 | (422) | 6,298 |
Amounts reclassified from AOCI | 1,714 | 2,711 | (4,561) |
Deferred income tax benefit (expense) | 4,652 | (949) | 1,596 |
Amounts reclassified from AOCI, net of income tax | 6,366 | 1,762 | (2,965) |
Balance end of period | 29,323 | 1,340 | 3,333 |
Unrealized Gains (Losses) on Derivatives | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance beginning of period | 3,067 | 2,073 | 279 |
OCI before reclassifications | (4,257) | 1,584 | 2,760 |
Deferred income tax benefit (expense) | 1,490 | (554) | (966) |
AOCI before reclassifications, net of income tax | 300 | 3,103 | 2,073 |
Amounts reclassified from AOCI | 9 | (55) | 0 |
Deferred income tax benefit (expense) | (4) | 19 | 0 |
Amounts reclassified from AOCI, net of income tax | 5 | (36) | 0 |
Balance end of period | 305 | 3,067 | 2,073 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (6,371) | (1,726) | 2,965 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Investment Gains (Losses), Net of Related Offsets | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (6,366) | (1,762) | 2,965 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains (Losses) on Derivatives | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ (5) | $ 36 | $ 0 |
Equity (Reclassifications Out o
Equity (Reclassifications Out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net investment gains (losses) | $ (1,178) | $ (3,737) | $ 4,399 |
Net derivative gains (losses) | (157,222) | 67,726 | 65,000 |
Net investment income | 86,327 | 57,780 | 52,944 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (48,940) | 132,562 | 25,083 |
Provision for income tax expense (benefit) | 100,725 | (42,152) | (1,988) |
Net income (loss) | 51,785 | 90,410 | 23,095 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 51,785 | 90,410 | 23,095 |
Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (6,371) | (1,726) | 2,965 |
Unrealized Investment Gains (Losses), Net of Related Offsets | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net investment gains (losses) | (1,761) | (2,745) | 4,550 |
Net derivative gains (losses) | 0 | (45) | (217) |
Net investment income | 47 | 79 | 228 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (1,714) | (2,711) | 4,561 |
Provision for income tax expense (benefit) | (4,652) | 949 | (1,596) |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (6,366) | (1,762) | 2,965 |
Unrealized Gains (Losses) on Derivatives | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (9) | 55 | 0 |
Provision for income tax expense (benefit) | 4 | (19) | 0 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (5) | 36 | 0 |
Foreign currency swaps | Unrealized Gains (Losses) on Derivatives | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net derivative gains (losses) | $ (9) | $ 55 | $ 0 |
Equity (Capital Contribution -
Equity (Capital Contribution - Narrative) (Details) $ in Millions | 1 Months Ended |
Dec. 31, 2017USD ($) | |
Equity [Abstract] | |
Capital contribution | $ 75 |
Equity (Statutory Income - Narr
Equity (Statutory Income - Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Equity [Abstract] | ||
Total adjusted capital of Brighthouse New York | 400% | 400% |
Statutory Accounting Practices, Prescribed Practice, Amount | $ 47.7 | $ 53 |
Equity (Dividend Restrictions -
Equity (Dividend Restrictions - Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | |
Payments of Dividends | $ 0 | $ 0 | |
Scenario, Forecast [Member] | |||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments without Regulatory Approval | $ 21,000 |
Other Expenses (Other Expenses)
Other Expenses (Other Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |||
Compensation | $ 13,508 | $ 8,535 | $ 13,421 |
Pension Post Retirement And Post Employment Benefit Costs | 0 | 796 | 1,334 |
Commissions | 33,129 | 17,586 | 21,291 |
Volume-related costs | 3,171 | 4,943 | 6,123 |
Related Party interest costs on ceded and assumed reinsurance | 4,743 | 10,535 | 11,276 |
Deferred Policy Acquisition Costs, Capitalization | (17,089) | (4,976) | (4,768) |
Premium taxes, licenses and fees | 3,795 | 2,590 | 3,607 |
Professional services | 5,209 | 1,529 | 373 |
Rent and related expenses | 481 | 1,096 | 1,065 |
Other | 19,006 | 14,393 | 11,491 |
Total other expenses | $ 65,953 | $ 57,027 | $ 65,213 |
Income Tax (Provision for Incom
Income Tax (Provision for Income Tax from Continuing Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||
Federal | $ 17,352 | $ (57,108) | $ 1,148 |
Foreign | 17 | 0 | 0 |
Current Income Tax Expense (Benefit) | 17,369 | (57,108) | 1,148 |
Deferred: | |||
Federal | (118,094) | 99,260 | 840 |
Income Tax Expense (Benefit) | $ (100,725) | $ 42,152 | $ 1,988 |
Income Tax (Reconciliation of I
Income Tax (Reconciliation of Income Tax Provision between US Statutory Rate and As Reported for Continuing Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income tax expense benefit continuing operations income tax reconciliation | |||
Tax provision at U.S. statutory rate | $ (17,129) | $ 46,397 | $ 8,779 |
Effective Income Tax Reconciliation, Tax Cuts and Jobs Act of 2017, Amount | (77,308) | 0 | 0 |
Dividend received deduction | (5,159) | (4,732) | (5,589) |
Prior year tax | (493) | 1,282 | (624) |
Tax credits | (636) | (797) | (580) |
Other, net | 0 | 2 | 2 |
Provision for income tax expense (benefit) | $ (100,725) | $ 42,152 | $ 1,988 |
Income Tax (Net Deferred Income
Income Tax (Net Deferred Income Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred income tax assets: | ||
Tax Credit Carryforward, Amount | $ 3,463 | $ 4,491 |
Deferred Tax Assets, Operating Loss Carryforwards | 3,661 | 0 |
Other | 2,973 | 2,206 |
Total deferred income tax assets | 10,097 | 6,697 |
Deferred income tax liabilities: | ||
Investments, including derivatives | 958 | 1,102 |
Deferred Tax Liabilities, Deferred Expense, Reserves and Accruals | 94,717 | 210,814 |
Intangibles | 1,384 | 1,850 |
Net unrealized investment gains | 7,875 | 2,373 |
DAC | 17,661 | 10,397 |
Total deferred income tax liabilities | 122,595 | 226,536 |
Deferred tax assets and liabilities [Abstract] | ||
Net deferred income tax asset (liability) | $ (112,498) | $ (219,839) |
Income Tax (Reconciliation of U
Income Tax (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits | |||
Balance at January 1, | $ 1,204 | $ 983 | $ 983 |
Additions for tax positions of prior years | 49 | 300 | 0 |
Reductions for tax positions of prior years | (62) | (23) | 0 |
Additions for tax positions of current year | 169 | 300 | 0 |
Reductions for tax positions of current year | (318) | 0 | 0 |
Settlements with tax authorities | (66) | (356) | 0 |
Balance at December 31, | 976 | 1,204 | 983 |
Unrecognized tax benefits that, if recognized would impact the effective rate | $ 976 | $ 1,130 | $ 909 |
Income Tax (Narrative) (Details
Income Tax (Narrative) (Details) - USD ($) $ in Thousands | Oct. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 50.00% | |||
Effective Income Tax Reconciliation, Tax Cuts and Jobs Act of 2017, Amount | $ (77,308) | $ 0 | $ 0 | |
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Deferred Tax Assets, Operating Loss Carryforwards | 3,661 | 0 | ||
Tax Credit Carryforward, Amount | 3,463 | 4,491 | ||
Operating Loss Carryforwards | 17,400 | |||
Income Tax True Up | ||||
True Up Of Prior Year Tax Return Included In Current Year Benefit or Expense Associated With Dividend Received Deduction Related to Separate Accounts | 400 | 900 | 600 | |
Income Tax Reconciliation, Deductions, Dividends, Related To Separate Accounts | 5,600 | $ 3,900 | $ 5,600 | |
Related Party Transactions, By Related Party [Abstract] | ||||
Assets | $ 958 | |||
Minimum | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Operating Loss Carryforwards, Expiration Date | Jan. 1, 2033 | |||
Maximum | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Operating Loss Carryforwards, Expiration Date | Jan. 1, 2037 | |||
Metlife Inc [Member] | ||||
Related Party Transactions, By Related Party [Abstract] | ||||
Related Party Transaction, Amounts of Transaction | $ 55,600 |
Income Tax Income Tax Penalties
Income Tax Income Tax Penalties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Penalties [Abstract] | |||
Income Tax Examination, Penalties Expense | $ 0 | $ 0 | $ 0 |
Contingencies, Commitments a108
Contingencies, Commitments and Guarantees (Insolvency Assessments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Other Assets: | ||
Premium tax offset for future discounted and undiscounted assessments | $ 300 | $ 300 |
Premium tax offsets currently available for paid assessments | 51 | 1,829 |
Other Liabilities: | ||
Insolvency assessments | 400 | 400 |
Insurance-related Assessments | ||
Loss Contingencies [Line Items] | ||
Total assets held for insolvency assessments | $ 351 | $ 2,129 |
Contingencies, Commitments a109
Contingencies, Commitments and Guarantees (Commitments - Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Mortgage Loan Commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet commitments | $ 355 | $ 42 |
Commitments to Fund Private Corporate Bond Investments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet commitments | $ 11,600 |
Contingencies, Commitments a110
Contingencies, Commitments and Guarantees (Guarantees - Narrative) (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Guarantees [Abstract] | ||
Liabilities for indemnities, guarantees and commitments | $ 0 | $ 0 |
Related Party Transactions (Rel
Related Party Transactions (Related Party Transactions) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Assets | $ 958 | ||
Broker Dealer Activities [Member] | |||
Related Party Transaction [Line Items] | |||
Assets | 1,090 | $ 934 | |
Income | 12,393 | 9,968 | $ 10,515 |
Expense | 39,306 | 32,191 | 30,672 |
Liabilities | 0 | 0 | |
All Services and Transactions Except Broker Dealer Activities [Member] | |||
Related Party Transaction [Line Items] | |||
Assets | 536,843 | 322,394 | |
Income | (303,626) | 50,358 | 16,759 |
Expense | (66,252) | (76,613) | $ (44,358) |
Liabilities | $ 448,237 | $ 99,641 |
Related Party Transactions (112
Related Party Transactions (Related Party Transactions - Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction, Due from (to) Related Party [Abstract] | |||
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | $ 38 | $ 19.9 | $ 30.4 |
Consolidated Summary of Inve113
Consolidated Summary of Investments - Other Than Investments in Related Parties (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost or Amortized Cost | $ 2,563,781 | |
Amount at Which Shown on Balance Sheet | 2,620,210 | |
Other Investments | 3,784 | $ 8,656 |
Mortgage Loans on Real Estate | 394,863 | $ 406,085 |
Fixed Maturities [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost or Amortized Cost | 2,165,134 | |
Estimated Fair Value | 2,221,563 | |
Amount at Which Shown on Balance Sheet | 2,221,563 | |
U.S. government and agency | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost or Amortized Cost | 535,757 | |
Estimated Fair Value | 547,063 | |
Amount at Which Shown on Balance Sheet | 547,063 | |
Public utilities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost or Amortized Cost | 53,821 | |
Estimated Fair Value | 56,323 | |
Amount at Which Shown on Balance Sheet | 56,323 | |
State and political subdivision securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost or Amortized Cost | 64,056 | |
Estimated Fair Value | 70,286 | |
Amount at Which Shown on Balance Sheet | 70,286 | |
Foreign government | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost or Amortized Cost | 15,833 | |
Estimated Fair Value | 16,403 | |
Amount at Which Shown on Balance Sheet | 16,403 | |
All other corporate bonds | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost or Amortized Cost | 1,021,214 | |
Estimated Fair Value | 1,050,415 | |
Amount at Which Shown on Balance Sheet | 1,050,415 | |
Total bonds | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost or Amortized Cost | 1,690,681 | |
Estimated Fair Value | 1,740,490 | |
Amount at Which Shown on Balance Sheet | 1,740,490 | |
Mortgage-backed and asset-backed securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost or Amortized Cost | 474,453 | |
Estimated Fair Value | 481,073 | |
Amount at Which Shown on Balance Sheet | 481,073 | |
Mortgage loans held-for-investment | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amount at Which Shown on Balance Sheet | 394,863 | |
Other invested assets | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amount at Which Shown on Balance Sheet | $ 3,784 |
Consolidated Supplementary I114
Consolidated Supplementary Insurance Information (Balance Sheet Items) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Supplementary Insurance Information, by Segment [Line Items] | |||
DAC and VOBA | $ 131,059 | $ 85,173 | $ 107,514 |
Future Policy Benefits and Other Policy-Related Balances | 686,779 | 634,292 | |
Policyholder Account Balances | 1,343,330 | 1,202,350 | |
Unearned Premiums | 1,050 | 1,086 | |
Unearned Revenue | 2,347 | 2,164 | |
Annuities | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
DAC and VOBA | 107,760 | 60,689 | |
Future Policy Benefits and Other Policy-Related Balances | 350,512 | 325,468 | |
Policyholder Account Balances | 1,324,527 | 1,179,305 | |
Unearned Premiums | 0 | 0 | |
Unearned Revenue | 2,347 | 2,164 | |
Life | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
DAC and VOBA | 23,101 | 24,265 | |
Future Policy Benefits and Other Policy-Related Balances | 327,281 | 299,274 | |
Policyholder Account Balances | 18,803 | 23,045 | |
Unearned Premiums | 1,033 | 1,064 | |
Unearned Revenue | 0 | 0 | |
Corporate & Other | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
DAC and VOBA | 198 | 219 | |
Future Policy Benefits and Other Policy-Related Balances | 8,986 | 9,550 | |
Policyholder Account Balances | 0 | 0 | |
Unearned Premiums | 17 | 22 | |
Unearned Revenue | $ 0 | $ 0 |
Consolidated Supplementary I115
Consolidated Supplementary Insurance Information (Income Statement Items) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplementary Insurance Information, by Segment [Line Items] | |||
Premiums and Universal Life and Investment-Type Product Policy Fees | $ 130,004 | $ 153,739 | $ 182,777 |
Net Investment Income | 86,327 | 57,780 | 52,944 |
Policyholder Benefits and Claims and Interest Credited to Policyholder Account Balances | 34,649 | 91,894 | 101,533 |
Amortization of DAC and VOBA | (39,997) | 23,217 | 103,826 |
Other Operating Expenses | 65,953 | 57,027 | 65,213 |
Annuities | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Premiums and Universal Life and Investment-Type Product Policy Fees | 113,225 | 122,830 | 139,905 |
Net Investment Income | 56,936 | 27,632 | 23,127 |
Policyholder Benefits and Claims and Interest Credited to Policyholder Account Balances | 15,118 | 62,676 | 65,764 |
Amortization of DAC and VOBA | (42,603) | 20,927 | 36,788 |
Other Operating Expenses | 48,171 | 37,537 | 45,835 |
Life | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Premiums and Universal Life and Investment-Type Product Policy Fees | 14,425 | 28,978 | 40,617 |
Net Investment Income | 19,018 | 17,033 | 15,379 |
Policyholder Benefits and Claims and Interest Credited to Policyholder Account Balances | 18,501 | 27,122 | 34,118 |
Amortization of DAC and VOBA | 2,585 | 2,272 | 66,568 |
Other Operating Expenses | 12,868 | 16,134 | 16,570 |
Corporate & Other | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Premiums and Universal Life and Investment-Type Product Policy Fees | 2,354 | 1,931 | 2,255 |
Net Investment Income | 10,373 | 13,115 | 14,438 |
Policyholder Benefits and Claims and Interest Credited to Policyholder Account Balances | 1,030 | 2,096 | 1,651 |
Amortization of DAC and VOBA | 21 | 18 | 470 |
Other Operating Expenses | $ 4,914 | $ 3,356 | $ 2,808 |
Consolidated Reinsurance (Conso
Consolidated Reinsurance (Consolidated Reinsurance) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Consolidated Reinsurance | |||
Life Insurance in Force, Gross Amounts | $ 48,509,917 | $ 50,748,993 | $ 53,017,387 |
Life Insurance in Force, Ceded Amounts | 41,167,006 | 43,894,276 | 48,212,042 |
Life Insurance in Force, Assumed Amounts | 0 | 0 | 0 |
Life Insurance in Force, Net Amounts | $ 7,342,911 | $ 6,854,717 | $ 4,805,345 |
Life Insurance in Force, Percentage Assumed to Net | 0.00% | 0.00% | 0.00% |
Direct premiums | $ 93,196 | $ 109,733 | $ 122,110 |
Ceded Premiums Earned | 66,928 | 58,994 | 50,238 |
Assumed Premiums Earned | 0 | 0 | 0 |
Premiums Earned, Net | $ 26,268 | $ 50,739 | $ 71,872 |
Premiums, Percentage Assumed to Net | 0.00% | 0.00% | 0.00% |
Life insurance (1) | |||
Consolidated Reinsurance | |||
Direct premiums | $ 93,196 | $ 109,733 | $ 122,110 |
Ceded Premiums Earned | 66,928 | 58,994 | 50,238 |
Assumed Premiums Earned | 0 | 0 | 0 |
Premiums Earned, Net | $ 26,268 | $ 50,739 | $ 71,872 |
Premiums, Percentage Assumed to Net | 0.00% | 0.00% | 0.00% |
Accident & health insurance | |||
Consolidated Reinsurance | |||
Direct premiums | $ 0 | $ 0 | $ 0 |
Ceded Premiums Earned | 0 | 0 | 0 |
Assumed Premiums Earned | 0 | 0 | 0 |
Premiums Earned, Net | $ 0 | $ 0 | $ 0 |
Premiums, Percentage Assumed to Net | 0.00% | 0.00% | 0.00% |
Consolidated Reinsurance (Narra
Consolidated Reinsurance (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Consolidated Reinsurance | |||
Reinsurance ceded | $ 66,928 | $ 58,994 | $ 50,238 |
Ceded Premiums, Life Insurance in Force | 41,167,006 | 43,894,276 | 48,212,042 |
Affiliated Entity [Member] | |||
Consolidated Reinsurance | |||
Ceded Premiums, Life Insurance in Force | 30,600,000 | 32,500,000 | 36,300,000 |
Life insurance (1) | |||
Consolidated Reinsurance | |||
Reinsurance ceded | 66,928 | 58,994 | 50,238 |
Life insurance (1) | Affiliated Entity [Member] | |||
Consolidated Reinsurance | |||
Reinsurance ceded | $ 51,900 | $ 44,200 | $ 37,100 |